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Funding a business
Benefits of positive cash flow to a business
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[QUOTE="Suba, post: 261265, member: 3658"] Cashflow is a form of financial statement that must be reported out or to third parties (investors, taxes), because it needs to be audited by a registered public accountant. Cash flow must also be prepared in accordance with general accounting principles (GAAP, maybe in your country the name is different). There are two methods for compiling cash flow, namely the direct method and the indirect method. Cashflow contains all cash transactions over a period generally a year and is classified as Funding Cash Flow, Investment Cash Flow and Operating Cash Flow. Cashflow statements are very important, especially for owners, management, investors, especially to evaluate the company's ability to pay its obligations. Also to evaluate the ability of cashflow for the next period. To evaluate cashflow you need to calculate several important ratios such as: operating cash flow ratio, price (shares) to cash flow ratio, operating cash flow ratio etc. [/QUOTE]
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