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MagicDiligence (< 20)

Understanding the Cash Flow Statement

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January 26, 2009 – Comments (1) | RELATED TICKERS: INTC , VMW , MU

The next entry in the financial statement series examines the cash flow statement, where companies reconcile their income statement with the amount of cash flowing into or out of the business. What do the line items represent and what can a cash flow statement tell us about a business? A look at this most important of financial statements.

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1 Comments – Post Your Own

#1) On May 21, 2009 at 1:17 AM, KhalidH (< 20) wrote:

Now that a lot of people had their lay offs due to recent changes in our economic situation, I think it is really a good time for us to start investing and plan for a business. Cash flow is essential for any business to maintain. It doesn't matter what kind of business it is – businesses like a mom and pop hardware store or a multinational megabank (that gets government sent, taxpayer paid for, cash disbursements for running their huge companies into the ground) the cash flow is important to maintain. During a soft economy, where a layoff is always pending, there isn't much cash flow, and a lot of businesses turn to installment loans. Starting a business during a downturn is a daunting proposition, as a new business without capital during a bad phase isn't a great prospect. It is possible to get cash flow again with short term loans.

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