How Cash Connects with Everything Else
Once you’ve learned to read the cash flow statement, you can inspect it for what it tells you about your company’s cash situation, and you can then figure out how to improve your cash position. 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. Now, this may not be what you thought you would be doing when you started your business, but hang in here. The information you’ll learn by going through ...