Discussion 4- 12 Hours From Now. Maximum Time

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The cash flow statement measures the amount of money going in and out of the business. The balance sheet measures the company’s assets, liabilities, and owners’ equity. The statement of cash flows uses information from the balance sheet and income statement to identify net sources of cash of a period of time. The importance of cash flows is that it determines if your company is profitable. If you have more cash going on than coming in your in negative financial health. Tips for keeping a healthy cash flow are receiving payments up front, making payment options easy, and requiring deposits. The differences in accounting between profit and cash flow can be the cause of a positive net income statement but failure as a business. This is why it’s important to get cash up front, request deposits, and stay on top of payments. Profit measures the company’s ongoing sustainability, while cash flow measures the company’s ability to pay bills when they become due.