D. Does the cash flows statement add any further information to that provided by the income statement or the balance sheet? Explain.
The statement of cash flows is needed to form a complete picture of the financial position of a company. It shows all the cash collected and all the cash disbursed during the period. And each cash flow relates to one of three business activities: operating, in
flows statement add any further information to that provided by the income statement or the balance sheet?
General characteristics of CFS : Complementing the balance sheet and income statement, the Cash Flow Statements allow investors to understand how a company's operations are running, where its money is coming from, and how it is being spent.
Due to the accrual accounting, the income sta
from affiliate 159 48 1 1 2
gross profit 2 161 219 93 53
As you can see above, loss from affiliate in 2009 increased a lot compare to 2008. It means that there is insufficient information to evaluate operating performance just by income statements. Thus investigation of cash flow statements is needed. Further analysis regarding cash flow statement will be dealt in problem D.
information is crucial for businesses in tourism service industry, the Internet provides an advantage in information related flow. Considering increasing competition in the environment, where traditional businesses operate, and a greater number of companies are moving into internet based tourism services industry offering lower prices, better choices resulting from wider selection, greater level
flow statement is distinct from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that has been recorded on credit.
1. Operations
Measuring the cash inflows and outflows caused by core business operations, the operations component of cash flow reflects how much cash is generated from a company's products or services.
2.