![]() Shorter periods, like days and weeks, are most useful for making sure the company doesn’t run out of cash. The time period of the report depends on the purpose. Ideally, more money flows in than flows out, and the total never goes below zero.Įvery Cash Flow Statement covers a specific period of time: a day, a week, a month, a year. Think of it like a checking account ledger: deposits of cash flow in, and withdrawals of cash flow out. The Cash Flow Statement is straightforward: it’s an examination of a company’s bank account over a certain period of time. We’ll examine the other basic types of financial statements in a moment, but examining the Cash Flow Statement is the best place to begin. ![]() I recommend starting with the Cash Flow Statement. In order to understand how well a company is performing, it’s useful to look at financial reports that track the business’ performance. Josh Kaufman Explains The 'Cash Flow Statement' Every Cash Flow Statement covers a specific period of time: a day, a week, a month, a year. Ideally, more money flows in than flows out, and the total never goes below zero.
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