Discussion 2: Cash Flow and Financial Analysis
Part 1: Importance of Cash
Generating cash is the ultimate responsibility for managers today. Cash and cash flow are considered the “lifeblood” of a business.
How important has cash generation been for your current company or a prior employer? How is cash generation different from the concept of profit and loss (P&L) in accounting? Provide an example of how a company manages cash flow.
Part 2: Application of Concepts/Financial Analysis
Review the materials in the link below. Based on the materials presented in this link, discuss why financial analysis is important in the overall understanding of the financial performance of a firm. Be specific and give examples based on your experience or research.
https://courses.lumenlearning.com/boundless-accounting/chapter/overview-of-financial-statement-analysis/
APA format
700 words minimum
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Discussion 2: Financial Analysis and Cash Flow
Part 1: The Value of Cash
The ultimate responsibility of today’s managers is to generate cash. Cash and cash flow are regarded as a company’s “lifeblood.”
For your current company or a previous employer, how crucial has cash generating been? What distinguishes cash production from the accounting notion of profit and loss (P&L)? Give an example of how a business handles its cash flow.
Part 2: Concepts in Action/Financial Analysis
Examine the materials on the following link. Discuss why financial analysis is vital in overall understanding of a firm’s financial performance based on the resources supplied in this link. Give particular examples based on your personal experience or research.
https://courses.lumenlearning.com/boundless-accounting/chapter/overview-of-financial-statement-analysis/
APA (American Psychological Association) style
700 characters
