Accounting / July 9, 2018 / Justice Buckley
No matter what motivated you to start or what your business does, the inherent purpose of every business is to generate a profit. That means in order to know whether or not your business is succeeding, you need to understand how it’s doing financially.
The cash flows from operating activities section comes first and tells you how much cash the company generated from its core business, as opposed to peripheral activities such as investing or borrowing. This is the area you should focus most of your attention on because it paints the best picture of how well a firm's business operations are producing cash that will ultimately benefit shareholders.
We Also Think You’ll Like