External Report Cash Flow

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Statement of Cash Flows (Cash Flow Statement, cash-flow) complements the balance sheet and income statement. The balance sheet reflects the company's financial position at a particular time (the end of the accounting period), and a report of cash flows explains the changes that have occurred with one of the components of the financial statements - in cash - from one balance sheet date to another. Profit and loss account reflects the results of operations for the period; and this activity is a major factor that changes the status of funds recognized in the statement of cash flows. Information about the cash flows of the enterprise is useful in that it provides users of financial statements the basis for assessing the ability of the company to attract and to use cash and cash equivalents.

This report is intended for 1C Enterprise 2.0

Statement of Cash Flows, in addition, contains information that is useful in assessing the company's financial flexibility. Financial flexibility - the ability of firms to generate significant amounts of cash in order to promptly respond to unexpected needs and opportunities. Information about the cash flows for prior periods, particularly cash flow from operations helps to assess financial flexibility. Evaluation of the ability of the company to survive, such as an unexpected drop in demand may include an analysis of cash flows from operating activities over the past period. The greater cash flows, the higher will be the firm's ability to withstand adverse changes in economic conditions.


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