i need help answering this question. The cash flow statement is often described

Question

i need help answering this question.

The cash flow statement is often described as the most important statement for both the companies decision makers and its investors. Discuss why that is? Respond to at least two of your classmates. Your grade is calculated based on your original discussion AND your response to classmates. Your discussion and response must be substantive. As a guideline, your discussion should be 2-3 paragraphs comprised of 3-5 sentences per paragraph. Your responses should be 2-3 paragraphs with 3-5 sentences per paragraph.

Explanation / Answer

The Cash Flow Statement is often described as important for both company decision-makers and investors. Information about the cash flow of an enterprise is useful in providing users of financial statements with a basis to assess the ability of the company to generate cash and the needs of the company to utilise those cash flows. The economic decisions that are taken by the users require an evaluation of the ability of a company to generate cash and the timing and certainty of the generation.

For company decision makers, Cash Flow Statement helps to evaluate company performance by checking the amount of cash generated from different key activities(financing, investing and operating). This statement considers the monetary impact of the activities.

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