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How Cash Connects with Everything Else
Once you’ve learned to read the cash flow statement, you can simply take it the way it comes and inspect it for what it tells you about your company’s cash situation. You can figure out the implications of the company’s cash situation and determine what IT should be proposing and doing to support the company’s success. We’ll spell out some of these opportunities in the following chapter.
But if you’re the type of person who enjoys a puzzle—who likes to understand the logic of what you’re looking at—then stick with us through this chapter. We will show you an interesting fact: you can calculate a cash flow statement just by looking at the income statement and two balance sheets.
The calculations to do ...
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