Skip to main content

Business Finance EBK HEALTHCARE FINANCE: AN INTRODUCTION

The important piece of information which is being reflected on the statement. Introduction Cash flow statement represents the uses and sources of cash in three categories viz. cash flow from financing activity, cash flow from investing activity and cash flow from operating activity. The users of financial statement are able to evaluate the ability of the company for generating revenue and its strategy for continuous operation through financing, investing and operating activities. The net cash ascertained from the operation is considered as an important piece of information because it acts as the best indicator for the well being of the company. Net flow of cash from operation reflects the loss or gain of money over a particular time period after factoring all debt. The business will have positive flow of cash if the company has surplus cash after meeting all obligations towards the cost of operation. However, if the obligation and liabilities cannot be discharged from the cash flow of the business, then the company is said to have a negative flow of cash. Net flow of cash from operation act as a measure of profitability which provides insight about the money lost or produced during a specific period of time.

The important piece of information which is being reflected on the statement. Introduction Cash flow statement represents the uses and sources of cash in three categories viz. cash flow from financing activity, cash flow from investing activity and cash flow from operating activity. The users of financial statement are able to evaluate the ability of the company for generating revenue and its strategy for continuous operation through financing, investing and operating activities. The net cash ascertained from the operation is considered as an important piece of information because it acts as the best indicator for the well being of the company. Net flow of cash from operation reflects the loss or gain of money over a particular time period after factoring all debt. The business will have positive flow of cash if the company has surplus cash after meeting all obligations towards the cost of operation. However, if the obligation and liabilities cannot be discharged from the cash flow of the business, then the company is said to have a negative flow of cash. Net flow of cash from operation act as a measure of profitability which provides insight about the money lost or produced during a specific period of time.

Solution Summary: The author explains that the cash flow statement represents the uses and sources of cash in three categories — cash from financing, investing, and operating activities. The net cash ascertained from the operation is an important piece of information.

EBK HEALTHCARE FINANCE: AN INTRODUCTION

EBK HEALTHCARE FINANCE: AN INTRODUCTION

6th Edition

ISBN: 9781567937428

Author: Gapenski

Publisher: YUZU

See similar textbooks

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

Blurred answer

Chapter 4, Problem 6.2STQ

Chapter 4, Problem 7.1STQ

Students have asked these similar questions

Need answer.

Solve plz now

Precious metal qn solve .

Chapter 4 Solutions

EBK HEALTHCARE FINANCE: AN INTRODUCTION

Ch. 4 - Prob. 1.1STQ Ch. 4 - Prob. 1.2STQ Ch. 4 - Prob. 1.3STQ Ch. 4 - Prob. 1.4STQ Ch. 4 - Prob. 2.1STQ Ch. 4 - Prob. 2.2STQ Ch. 4 - Prob. 2.3STQ Ch. 4 - Prob. 2.4STQ Ch. 4 - Prob. 2.5STQ Ch. 4 - Prob. 3.1STQ

Knowledge Booster

Background pattern image

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Entrepreneurial Finance
Finance
ISBN:9781337635653
Author:Leach
Publisher:Cengage
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Personal Finance
Finance
ISBN:9781337669214
Author:GARMAN
Publisher:Cengage
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning

Text book image

Business Its Legal Ethical & Global Environment

Accounting

ISBN:9781305224414

Author:JENNINGS

Publisher:Cengage

Text book image

Entrepreneurial Finance

Finance

ISBN:9781337635653

Author:Leach

Publisher:Cengage

Text book image

Principles of Accounting Volume 1

Accounting

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax College

Text book image

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:Cengage Learning

Text book image

Personal Finance

Finance

ISBN:9781337669214

Author:GARMAN

Publisher:Cengage

Text book image

Auditing: A Risk Based-Approach (MindTap Course L...

Accounting

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Cengage Learning

SEE MORE TEXTBOOKS