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What is the importance of Reporting of cash flows from operating activities?
Cash flow statements are an integral part of that student’s academic life that are related to accounting or finance field. So it is very important to have a grip on this topic. Our team is dedicated 24×7 towards providing Reporting of Cash Flows from Operating Activities Assignment Help. Let us see what importance it holds in the domain of accounts and finance-
- Cash flow statements show that how changes in the balance sheet and income will have an effect on the cash and cash equivalents.
- Reporting of cash flows from operating activities is an important part of financial activities and the accounts statements are incomplete without it.
- Reporting of cash flows from operating activities tells that how much cash inflow and out flow a company has by its regular activities such as the process of manufacturing and sale of goods, selling services,
- Long term capital costs or investments costs are to be excluded while reporting cash flows from operating activities.
- It is generally calculated as EBIT+ depreciation – taxes +/- changes in working capital.
- It is very important concept for finance students as it gives the picture of normal business activities in the daily routine. By seeing the results, one can have an idea about the financial position of the company and how the company is performing.
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