How does the cash flow analysis helps in the management decision making process?
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Cash flow analysis is the examination of the financial report of the cash inflows and cash outflows of the company. It helps the management in decision making through the following ways : 1.It helps them to anticipate the future deficits in cash and hence help them to make the financing decisions beforehand.
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THE CASH FLOW STATEMENT
The final total shows the net increase or decrease in cash for the period. Cash flow statements facilitate decision making by providing a basis for judgments concerning the profitability, financial condition, and financial management of a company.
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