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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