45.+Use+a+cash+flow+statement+to+guide+business+operations.

Explain how a cash flow statement can be used to guide business operations.

One part of a cash flow statement is cash from operations. This section details all activities involving a cash transaction such as a customer paying or paying payroll expenses. A business can use this section to determine trends in or cash profit. Once the trends are identified, a business needs to have them double checked for accuracy or discrepancies. Once the trends are identified and checked, a business can adequately spend money to help improve the business in all areas and discover ways to increase profits and decrease expenses. Also, they can help estimate changes in market values and other significant economic indicators. A cash flow statement is a great tool to use to understanding business operations and how to improve them.