|
|
| Line 1: |
Line 1: |
| − | {{cquote|The statement of cash flows, which aims to identify how much capital in the organization is liquid (i.e. easily converted into spend). This is more of a chronological statement, as it takes the previous pay period and the current pay period, and identifies the difference in overall available cash.
| + | ''“A cash flow statement is a financial statement that measures the cash generated or used by a company in a given period. It typically sets out a company's cash sources and uses for the period into three categories: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.”'' [https://investinganswers.com/financial-dictionary/financial-statement-analysis/cash-flow-statement-2786 Investing Answers] |
| | | | |
| − | The purpose of this document is quite interesting. An organization's available cash could be considered their flexibility in capturing external opportunities (e.g., investing in new opportunities, such as offering a new product or acquiring a competitor).|author=[https://www.boundless.com/business/textbooks/boundless-business-textbook/financial-statements-18/accounting-information-109/financial-accounting-514-7766/ Boundless]}}
| |
| | | | |
| | {{IDevice|theme=line|type=reading|title=Required reading|id=Reading|body= | | {{IDevice|theme=line|type=reading|title=Required reading|id=Reading|body= |
Revision as of 00:10, 7 January 2019
“A cash flow statement is a financial statement that measures the cash generated or used by a company in a given period. It typically sets out a company's cash sources and uses for the period into three categories: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.” Investing Answers
Read the following texts:
- Cash Flow Statement by Entrepreneur.
- Analyze Cash Flow The Easy Way by Investopia.
- Sample Cash Flow Statement by Nolo. An excellent worked example.
WEnote
Thinking about your own entrepreneurial idea, create a spreadsheet (like 3 above) and examine your "Cash at End of Month" over the year.
Do you foresee any months where your cash flow will go negative? What is your plan to correct this?
Post your comment(s) below, and then look on the course feed page to see what others have posted.
If you prefer, you can create a post on your learning journal blog. Be sure to label or tag your post IENT103.
Note: Your comment will be displayed in the course feed.
