Cash Flow

Companies go bust primarily because they run out of cash
The cash flow statements make it far easier to spot the early warning signs

Summarises the flows associated with the profit and loss and balance sheet

Direct Method

Indirect Method

assets = liabilities (financial obligations to others, creditors) + equity

A change in an asset will be offset by a change in an asset, liability or equity

paying a dividend will reduce equity ?

revenue increases assets on balance sheet
expenses reduces assets on balance sheet

Can all the months within my selected period to be 30 days ?
Can even February have 30 days

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