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Cash Flow Analysis

A Series of Articles of Various Cash Flow Analysis Techniques and Tips


Two of the financial statements that business firms must prepare are the Income Statement and Statement of Cash Flows. The income statement shows a firm's profit or net income. The statement of cash flows shows the firm's cash position.

Both are necessary for the business owner to know. When you operate a small business, cash is king. You can be profitable, but cash poor. If that is your position, you are in danger of losing your business. These articles show you how to do cash flow analysis, give you tips on how to increase your cash flow, and introduce you to cash budgets and Statements of Cash Flows and show you how to analysis them. You need to know all of this to properly operate your business firm.

1. How to do a Cash Flow Analysis

A complete, line by line, explanation of building and analyzing a cash budget.

2. The Difference Between a Cash Budget and a Statement of Cash Flows

The purpose of the cash budget and the statement of cash flows and the difference between them.

3. The First Step in Analyzing a Statement of Cash Flows

Comparative balance sheets and their explanation - the first step in analyzing a Statement of Cash Flows.

4. Preparing and Analyzing a Statement of Cash Flows

Analyzing a Statement of Cash Flows involves looking at the sources and uses of funds from the comparative balance sheets. Here is a line-by-line cash flow analysis of a sample Statement of Cash Flows.

5. Detailed Steps in Preparing a Statement of Cash Flows

Here is a summary article detailing all the steps in preparing a Statement of Cash Flows.

6. Calculate Your Company's Free Cash Flow

Free cash flow is the gold standard of your company's financial health. Add an analysis of your company's free cash flow to your cash flow analysis to make it stronger.

7. Three Free Cash Flow Calculations

There are three ways to calculate free cash flow, all leading to the same answer. Here are examples of all three ways.

8. Calculate Cash Flow Ratios for Your Company

Calculating the cash flow ratios for your company can tell you about its liquidity, solvency, and viability. Add these calculations to your cash flow analysis to strengthen it.

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