Help Cash Flow and Balance Sheet Rush

[Jnar942]

Mga boss sino jan pwede tumulong sa akin need lang po tom willing to pay po salamat in advance

 

[kazumi08]

company?

 

[moolamore]

Cash Flow Statement and Balance Sheet are two important financial statements that provide insights into the financial position and liquidity of a company. Here's an overview of each statement:

1. Cash Flow Statement:The Cash Flow Statement tracks the cash inflows and outflows of a business over a specific period, typically divided into three categories:

• Operating Activities: This section includes cash flows generated or used by a company's core operations, such as revenue from sales, payments to suppliers, salaries, and operating expenses.
• Investing Activities: This section focuses on cash flows related to the acquisition or sale of long-term assets and investments, including purchases or sales of property, plant, and equipment, and investments in other companies.
• Financing Activities: This section covers cash flows related to the company's financing activities, such as issuing or repurchasing equity shares, raising or repaying debt, and paying dividends.

The Cash Flow Statement provides insights into the sources and uses of cash, highlighting whether a company generates positive or negative cash flow and how it is managed. It helps assess the liquidity and cash flow position of a business.

1. Balance Sheet:The Balance Sheet provides a snapshot of a company's financial position at a specific point in time. It presents the company's assets, liabilities, and shareholders' equity. The balance sheet follows the fundamental equation: Assets = Liabilities + Shareholders' Equity.

• Assets: Assets represent what a company owns or controls. They are typically categorized as current assets (e.g., cash, accounts receivable, inventory) and non-current assets (e.g., property, plant, and equipment, long-term investments).
• Liabilities: Liabilities represent what a company owes to external parties. They are classified as current liabilities (e.g., accounts payable, short-term debt) and non-current liabilities (e.g., long-term debt, deferred tax liabilities).
• Shareholders' Equity: Shareholders' Equity represents the residual interest in the company's assets after deducting liabilities. It includes items such as common stock, retained earnings, and additional ρáíd-in capital.

The Balance Sheet provides an overview of a company's financial health and its ability to meet its financial obligations. It helps assess the company's liquidity, leverage, and overall financial stability.

Both the Cash Flow Statement and Balance Sheet are important for financial analysis. They complement each other in providing a comprehensive understanding of a company's financial performance, cash flow dynamics, and overall financial position.