Interpreting Cash Flow Statements

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  • Created by: Benjhigg
  • Created on: 16-04-15 10:00
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  • Interpreting Cash Flow Statements
    • assess the accuracy of the forecast - increasing advertising increases sales
    • Find the cause of a cash flow problem
    • Look at the timings of receipts and payments
    • Determine whether the cash problem is likely to deepen or improve over time
    • Identify periods when the business has large amounts of available cash; this is the ideal time to make expensive purchases or investments


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