Why Cash Flow From Operations is important information

Compose a 250 words essay on Why Cash Flow From Operations is important information. Operating expenses are subtracted from the operating revenues to extract the net cash flow from operating activities. this is why it is so important for small businesses to keep in check its operating cash flows.The other reasons why cash flow from operating activities is so important for small businesses is its ability to quickly determine the immediate financial health of the company. Cash flow is important as it gives the firm the ability to pay off current expenses. The current expenses usually include. labor costs and debt repayments. For these reasons, cash flow from operations (CFO) is important for both parties. the firm as well as the lenders and creditors. The creditors can assess the investment potential of the company from its CFO. Small businesses usually start with debt financing and the interest is an operating cash flow, since this figure is adjusted for liabilities, depreciation and receivables (Ross, Westerfield, Jordan, 2012), an operating cash flow is generally more accurate measure of how much cash the business has generated as compared to other measures such as Net Income (NI) or Earnings Before Interests and Taxes

“Struggling with a similar assignment?” We can help!!

How it works – it’s easy


Place your Order

Submit your requirements through our small easy order form. Be sure to include and attach any relevant materials.

Make a payment

The total price of your order is based on number of pages, academic level and deadline.


Writing process

We assign the assignment to the most qualified tutor. When the tutor completes the assignment, it is transferred to one of our professional editors to make sure that the assignment meets all of your requirements.

Once complete, we’ll send your assignment via the email provided on the order form.



Achieve academic succes with the best online tutors.