Answer to Question #235483 in Accounting for Sukh

Question

Can Augusta operations generate sufficient cash to pay the term loan which statement is this? Cash flow , balance sheet

Answer 1

Solution:

This statement is a cash flow statement.

A cash flow statement shows all the cash inflows and outflows that flows in business.

The primary purpose of the statement of cash flows is to provide information about cash receipts, cash payments, and the net change in cash resulting from the operating, investing, and financing activities of a company during a particular period.

Cash provided by operations is generally considered to be the best measure of whether a company can generate sufficient cash to continue as a going concern, pay its loans, and to expand.