This paper focuses on the understanding of cash flow statement and how to compare cash flow statements for different periods and come up with critical business decisions. The paper will also cover different sections of activities of cash flow statement such as operating activities, investing activities and financing activities. Sources and uses of cash and cash equivalent from each section will also be discussed widely. The paper will go on to analyze the financial strength of different firms using cash flow statements. There will also be comparison of different firms to determine the one with the strongest financial base and also to determine the suitable firm for lending purposes.
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