The Use of Cash-Flow Statement for Decision-Making

The Cash-flow statement provide an important ingredient of decision-making due to the company’s financial stability and viability. The succes and survival of every organisation depends on its ability to generate an aquire cash. Cash flow is a concept that we all understatnd. Companies survive because they have cash, they fail when they don’t. We must therefore be interested in a company’s ability to generate cash for itself, and to acquire it from other sources. This can be clearly seen in cash flow statement. Thus the focus of this article is on understanding and interpreting cash flow statements.