bankers

The Challenges of Dealing with the Cash Flow Statement

The Challenges of Dealing with the Cash Flow Statement

It’s interesting how over the years, companies make adjustments to the rules that always seem to work in their favor.  Generally, the reporting transactions are accurate and legal, but may paint a different picture of the financial health of the company.  As a lender or trusted advisor, it’s important to understand the shortcomings of the reporting system. This understanding is key to maintaining awareness of important issues that impact how cash flows through a company.  Let’s look at a few problems within the three main sections of the cash flow statement.  Cash generated from:
1) Operating
2) Investing
3) Financing activities