Writes in their own language as used colloquially.
The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1
In this article, we'll show you how the CFS is structured, and how you can use it when analyzing a company.
KEY TAKEAWAYS
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.
The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1
The main components of the cash flow statement are cash from operating activities, cash from investing activities, and cash from financing activities.
The two methods of calculating cash flow are the direct method and the indirect method.
Answer:
there is an increase in taxes of $52,192
Explanation:
The computation of the net payment or saving is shown below:
Given that
Book value = $450,000
Sale value = $636,400
since the sales value is more than the book value so here the capital profit is there
Therefore capital profit would be
= $636,400 - $450,000
= $186,400
Now tax would be
= $186,400 × 28%
= $52,192
So there is an increase in taxes of $52,192
