Cash and the statement of cash flows
This week you were asked to read pp. 125-154 in your Financial Intelligence textbook, which covered the topics of cash and the statement of cash flows. The chapter covers some important topics around the role of cash in a business, so let’s dig in a bit deeper. Use both your book and external research to answer the following questions:
- Is cash a reality check for business?
- There are three main categories of cash flows in a business. As a potential investor, what does each category tell you about the business? Any personal experiences to share as an investor?
- Finally, from the perspective of a manager, why does cash matter?
For the book \\”Financial Intelligence, Revised Edition: A Manager\\\’s Guide\\”
josue.rivera@mymail.champlain.edu
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