BENEFITS OF CASH FLOW STATEMENT


Benefits:
(a) Cash flow statement provides information about the changes in cash and cash equivalents of an enterprise.

(b) Identifies cash generated from trading operations.

(c) The operating cash surplus which can be applied for investment in fixed assets.

(d) Portion of cash from operations is used to pay dividend and tax and the other portion is ploughed back.

(e) Very useful tool of planning.

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