sam boyer acc 291 week 7

sam boyer acc 291 week 7 - Running head CASH FLOW 1 Cash...

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Running head: CASH FLOW 1 Cash Flow Samatha Boyer Acc/291 1/31/15 Tameka Johnson
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CASH FLOW 2 Cash Flow Throughout the course of this paper, I will be discussing why a cash flow statement is required by companies. I will also discuss the three sections of a cash flow statement with a description about what each sections tells you about the company. Companies are required to use a cash flow statement because it includes necessary information for external users such as; investors, and lenders. A cash flow statement is important because it shows exactly how much cash has been generated by the company. This statement also shows as proof the company can afford to stay in business and pay for any future expansions. (Weygandt, 2010) The cash flow statement is separated into three parts. These parts are operating activities, financial activities, and investing activities. The cash flow statement is separated into three parts because it can give a better description on what exactly is on the cash flow statement. By breaking it down into three separate parts, there is more organizational structure. Also, since the
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