From the course: Accounting for Non-Accountants

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Reading and using a cash flow statement

Reading and using a cash flow statement

From the course: Accounting for Non-Accountants

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Reading and using a cash flow statement

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- Who likes cash? I like cash. Everybody likes cash. And for a business, cash is king. If you have cash, you can pay your employees. Obviously, I don't mean you pay your employees with cash. I just mean that there's money in the bank so the payroll checks won't bounce, and that's a great thing. I am convinced that having a basic understanding of the statement of cash flows will help you make better decisions. Come along with me on this journey, starting with an exploration of the basic formatting of a statement of cash flows. What would you want from a statement of cash flows? Most likely, you want to know things like did our business bring in more cash than it spent? That's a great question. How about also knowing did we have to borrow any cash? Another great question. In my opinion, the format of the statement of cash flows is the best place to start our exploration. Think of the statement of cash flows as having…

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