Finance for Non-Financial Managers : [PDF Download]

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“There are two or three formats for presenting the cash flow statement; in this book we’ll use the indirect method of presentation. It’s the same format as appears in all published financial reports of public companies and the same format as the report that’s readily produced by most accounting software.

It’s also the format that produces the most useful information with the least paper. And the really good news is that it begins where the income statement ends, literally, because its intent is to answer that important question raised earlier, “What is the difference between net profit and net cash flow?”

Answering that question gets us into defining the differences and then presenting them in a way that non-financial readers can understand. A few words about format will be helpful here, before we actually look at a report.”

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