Analysis of an Enterprise's Financial Position Through Statement of Cash Flow

Because the statement of flow,as an accounting statement based on receipts and payment,can provide its user the information of the inflow and outflow of and equivalents,it facilitates the appraisement of the capability of an enterprise in obtaining and equivalents and the prediction of its future flow.Therefore,analysis of the statement of flow can not only reveal the ability of the enterprise to create net flow but also unveil the fluidity of its assets and its financial position.The importance of such analysis to the information user is especially highlighted in the modern financial planning management that advocates cash supremacy.