M2 Linkages - Linkages Given your understanding of cash...

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Linkages? Given your understanding of cash flow, financial statements, ratio analysis and time value of money, provide an example of why the integration of these concepts would be important. Do not quote the text, but think through these tools and provide an example for the others in the class as to the importance and value of these ideas when they are effectively integrated.In order for an organization to successfully operate its business, there must be the existence of planning, controlling and analyzation. The organization can procure high profits by implementing these elements. In order to determine the financial health of an organization, an organization has various options available to integrate the available options is the core notion. The synopsis of the elements is expressed as follows:The record of how cash value changes over time is the cash flow statement. These are the cash inflowand outflow of a corporation representing the operating activities. This is an important tool to determine the value of a firm (Gittman, et al, 2015, p. 145). Levels of cash flows, good or bad, indicates how an organization generates cash flow and how such cash flow is spent. Incoming funds come from sales of goods or services, revenues, and gifts. When there is more cash coming in than flowing out, the organization has a positive cash flow. Outgoing funds are expenses the organization occurs, such as mortgage, rent, salaries, taxes, and other accounts payables. If there is more cash flowing out than coming in, then the organization experiences negative cash flow. A financial statement is the formal record of an organization which will outline the financial activities of an organization or entity and include income statements, statements of retained earnings, balance sheet and cash flow. Financial statements are used to analyze the performance, and to indicate the destiny of the organizations stock price. In order to maintain continuity of information and

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