Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
The statement of cash flows is a very important statement
The statement of cash flows is a very important statement. In fact, the FASB at one point discussed some changes may be in order. Historically, earnings have been the main measurement of profitability of a firm. Today, some folks believe that the cash flow statement may be a more appropriate predictor. Do you agree or disagree? Support your position with examples and reasoning.
Expert Solution
There are good arguments made by prominent investors, including figures like Warren Buffet, that the statement of cash flows may be a better indicator of a company than the income statement.
The statement of cash flows is broken down into three parts and many investors consider the second section that discusses investment. Some investors consider the heavy flow of cash to adding assets to indicate the business is set for growth and flows of cash from the business from sales of assets to be a sign of reduced capacity. However, other investors are more concerned with the fundamental operational ability to produce efficiently that is indicated by the income statement.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
