Discussion 2: Cash Flow and Financial Analysis

Part 1: Importance of Cash. – write 300 words

Generating cash is the ultimate responsibility for managers today. Cash and cash flow are considered the “lifeblood” of a business.

How important has cash generation been for your current company or a prior employer? How is cash generation different from the concept of profit and loss (P&L) in accounting? Provide an example of how a company manages cash flow.

Part 2: Application of Concepts/Financial Analysis – write 300 words

Review the materials in the link below. Based on the materials presented in this link, discuss why financial analysis is important in the overall understanding of the financial performance of a firm. Be specific and give examples based on your experience or research.

Overview of Financial Statement Analysis