Cash Flow Statements
- Show the pattern of short-term management of cash inflow and outflow
- Summarises how business will pay for short term liabilities from sales of inventory
- Period of 12 months
- Avoids cash shortage by planning ahead
- Predicting when cash will be needed and therefore avoiding the need for more debt.
Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.