387.a portfolio task 4
TRANSCRIPT
PORTFOLIO TASK 2: CASH FLOW STATEMENTS
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INTRODUCTION
A business may still become bankrupt even if they make profits because profits are not cash.
Without cash, companies are not able to operate normally. In accounting, cash flow statement is
the record that provides useful information about company’s cash receipts and payments. This
report will explore the importance of cash flow statement as well as relevant information from
the statement of JLJ to estimate the business’ performance.
BODY
a) The need for a cash flow statement
b) Interpret the terms displayed upon the statement
c) Overall cash position of the business
CONCLUSION
To sum up, cash flow statement is useful tool for businesses to control what is happening to its
money as well as make appropriate cash plan. In the case of JLJ, the company was able to
generate cash inflow to cover necessary expense and to invest in the company’s future, so the
overall performance of JLJ is good.
REFERENCE
BPP, (2010). Management Accounting and Financial Reporting. London: BPP Learning Media
Ltd.
Loth, R. (2006). Analyze Cash Flow The Easy Way. [online] Investopedia. Available at:
http://www.investopedia.com/articles/stocks/07/easycashflow.asp [Accessed 2 Dec. 2014].
Mohana, R. (2011). Financial Statement Analysis and Reporting. PHI Learning Pvt. Ltd.
Ramachandran (2013). How to read a cash flow statement. Tata McGraw-Hill Education.
Walters, S. (2012). Importance of the Cash Flow Statement: Shepard Schwartz & Harris LLP.
[online] Ssh-cpa.com. Available at: http://www.ssh-cpa.com/newsroom-publications-dont-
overlook-the-cash-flow-statement.html [Accessed 2 Dec. 2014].