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I Think The most Element in Cash Flow Is The Surplus Which Com from Operating Activity which You Can
Show the Operating Activities Results and Who You Can Meet Your Expenses and How You Can Planed to future Wise which can help the continuously of the company
Cashflow statement is prepared to keep the company informed about the requirement of cash for payment to vendors and meet the statuary expenses like salaries,tax etc for cash planning.
To find out the solvency of the company
Cash flow is of vital importance to the health of a business. One saying is: “revenue is vanity, cash flow is sanity, but cash is king”. What this means is that whilst it may look better to have large inflows of revenue from sales, the most important focus for a business is cash flow.
It shows you the reality picture of company position as a cash basis
, shows you how the company performance looks
, shows you how is the company liquidity
and shows you how is the company obligation looking
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