Changes

Cash flow in a business enterprise refers to not just the operating of the business, but how well it collects and pays its debts and how it its money is spent.

'''Cash flow''' in a business enterprise refers to not just the operating of the business, but how well it collects and pays its debts and how it its money is spent.

Companies that prepare financial statements under [[Generally Accepted Accounting Principles]] must prepare a Statement of Cash Flow in addition to the more widely known Income Statement and Balance Sheet.  The statement provides a link between the Net Income reported on the income statement to the final cash balance shown on the balance sheet.

Companies that prepare financial statements under [[Generally Accepted Accounting Principles]] must prepare a Statement of Cash Flow in addition to the more widely known Income Statement and Balance Sheet.  The statement provides a link between the Net Income reported on the income statement to the final cash balance shown on the balance sheet.