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Cash Flows Analysis and Financial Statements - Assignment Example
Finance & Accounting
Pages 4 (1004 words)
Cash flow analysis and financial statements Question 1: A company’s financial information is usually utilized by various people and who are impacted directly or indirectly by this information. Some of the main users of this kind of information include the management, employees, creditors, potential investors, suppliers and customers…
Since the employees require stability of tenure, they would not want a situation whereby the company doesn’t guarantee their jobs. The management is interested in this information since it would want to know its performance and review the weak points which need to be improved. The information is important to the management since it needs to provide periodic reports on the company’s performance. The potential investors need to evaluate whether the company is a good investment opportunity. Without proper information, the company could not be an attractive investment opportunity since it would lack transparency. Eventually creditors and suppliers need to evaluate the financial information in order to find out whether this company is credit worth. They would want to find out whether they could extend credit facilities in terms of money or goods. Question 2: Most of the financial information is usually published in journals, magazines and annual reports. Some of these reports are usually given during the annual general meeting to the shareholders and potential investors. Other sources which can be utilized could include online sources such as the company websites or online journals and magazines such as www.businessweekly.com. ...
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