BU127 Chapter Notes - Chapter 5: Root Mean Square, Earnings Before Interest And Taxes, Cash Cash
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BU127 Full Course Notes
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Document Summary
The statement of cash ows focuses attention on: A rm"s ability to generate cash internally, Its management of current assets and current liabilities, And the details of its investments and its external nancing. Financial analysts consider cash ow an important indicator of a company"s nancial health. Basically, the statement of cash ows explains how the amount of cash on the statement of nancial position at the beginning of the period became the amount of cash reported at the end of the period. The de nition of cash includes cash and cash equivalents. The statement of cash ows reports cash in ows and out ows in three broad categories: operating activities: cash in ows and out ows directly related to earnings from. Investing activities: cash in ows and out ows related to the acquisition or sale of assets (other than inventory and cash equivalents: financing activities: cash in ows and out ows related to external sources of.
