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Cash flow and net income are both important. If the cash flows are ignored, a company could...

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Finance

Cash flow and netincome are both important. If the cash flows are ignored, a companycould miss that they are cash poor and unable to attain businessstrategies and improvements that could end the business. If netincome were ignored, it would also mean the main driver for stockprices could be overlooked and this could also be very harmful fora company.

What does everyonethink about this statement? Do you agree or disagree?

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I agree with the statement Both cash flow statement and net income statement are important indicators of the performance of the business The net income statement is important because it gives an    See Answer
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Cash flow and netincome are both important. If the cash flows are ignored, a companycould miss that they are cash poor and unable to attain businessstrategies and improvements that could end the business. If netincome were ignored, it would also mean the main driver for stockprices could be overlooked and this could also be very harmful fora company.What does everyonethink about this statement? Do you agree or disagree?

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