Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. cash flow and net income are both important. if th

Cash flow and net income are both important. If the cash flows are ignored, a company could...

70.2K

Verified Solution

Question

Finance

Cash flow and netincome are both important. If the cash flows are ignored, a companycould miss that they are cash poor and unable to attain businessstrategies and improvements that could end the business. If netincome were ignored, it would also mean the main driver for stockprices could be overlooked and this could also be very harmful fora company.

What does everyonethink about this statement? Do you agree or disagree?

Answer & Explanation Solved by verified expert
4.0 Ratings (833 Votes)
I agree with the statement Both cash flow statement and net income statement are important indicators of the performance of the business The net income statement is important because it gives an    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Cash flow and netincome are both important. If the cash flows are ignored, a companycould miss that they are cash poor and unable to attain businessstrategies and improvements that could end the business. If netincome were ignored, it would also mean the main driver for stockprices could be overlooked and this could also be very harmful fora company.What does everyonethink about this statement? Do you agree or disagree?

Other questions asked by students

Q

1(a) If ut ? kuxx = f, vt ? kvxx = g, f ? g,...

Advance Math
Q

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been...

Accounting
Q

Problem 3 Block A with mass 2 kg is placed on top of Block B...

Physics
Q

A circle has the equation x 1 y 3 16 What are the coordinates of...

Geometry
Q

Which data set is the farthest from a normal distribution?. 2, 3, 3, 4, 4,...

Basic Math
Q

The combined area of New York and California is 204 188 square miles The area...

Algebra
Q

Mortgage contracts grant the lender the right to be paid from the cash proceeds of...

Accounting
Q

If a taxpayer has not received her 90 day letter, how might she toll interest...

Accounting
Q

Which of the following statements regarding the expanded accounting equation is correct? A. Debits...

Accounting
Q

Hi I need help doing these journal entries! The following transactions occurred during the first...

Accounting
Q

Trenkamp Collection Agency \table[[3,M,2,?,98,88,9,10,$12,$149.60,$24,525

Accounting
Q

Young vs UPS 1. Explain the facts of the case leading to the dispute. 2....

Finance