Monthly Archives - September 2012

Three Reasons Why Cash Flow Statements are Important to Business Owners

A Cash Flow Statement is a financial statement used to report a company’s source and use of cash. Sources of cash are called cash inflows, while monies used are called cash outflows. A cash inflow can be described as money flowing into the company. Examples of cash inflows include: Capital investment Sales Dividends Interest On the other hand, a cash outflow can be described as money flowing out of the company. Examples of cash outflows include: Equipment purchases Loan payments Salaries Taxes There are three very important reasons why a cash flow statements [...]

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