Question: Please provide an apa discussion response citing the below references in the text of your response. Cash flow from operations is important for organizations because

Please provide an apa discussion response citing the below references in the text of your response.

Cash flow from operations is important for organizations because cash flow into the company is cash on hand (Siciliano, 2015), in the pocket, or in the bank; cash gives the company good health, like oxygen in the lungs. Cash allows a company to breathe freely. Cash allows an organization to move and be flexible. Wall Street Survivor (2013) states that the cash flow a company reports is the cash coming in and going out of the company. Theskeebi21 (2011) states that any cash flow coming in that is more than the cash flow going out is a sign of good financial health for a company. Cash flow from operations naturally occurs when a company is in good health, like breathing. Rule #1 Investing (2016) states when evaluating a company's cash flow statement, you are looking to see if the company is healthy. So when I think of cash flow, I think of the necessary healthy operation of a company and compare that to breathing. When your breath functions correctly, you are healthy and don't think about it much. But, when you are not healthy, you think about it a lot. When a company's cash flow is out of wack, in the negative, that is a sign of being unhealthy. You tend to think about it a lot.

The three best practices I gathered from the resources involve correctly reporting the flow of cash on the report. Companies can get in a little trouble with inaccuracies in the report. For example, accounts receivable. Blackman (2014) states that income and cash are not the same, so a company must not add receivables for sold products to cash as it has not yet received them. Another is from Siciliano (2015), who states that sales in a month won't necessarily be reported as cash flow; they will be once they are paid by the customer (similar to Blackman, 2014). Lastly, Siciliano (2015) discusses how inventory affects cash flow. The cash flow will be negatively affected if a company's inventory cost exceeds its sales in a particular time frame. This is negatively impacted because the company spent more on the inventory than it sold.

References

Blackman, A. (2022, Mar 30th).How to read a cash flow statement.Fundamentals of financial statements. Envato tuts+.https://business.tutsplus.com/tutorials/how-to-read-a-cash-flow-statement--cms-71Links to an external site.

Rule #1 Investing. (2016).How do you read a cash flow statement?[Video]. YouTube.https://www.youtube.com/watch?v=X17bUV-EfIMLinks to an external site.

Siciliano, G. (2015).Finance for nonfinancial managers.(2nd Edition). McGraw Hill Education.

TheSkeebi21. (2011).What is cash flow?[Video]. YouTube.https://www.youtube.com/watch?v=hISdzmjNO5wLinks to an external site.

Wall Street Survivor (2013).What is a cash flow statement.[Video]. YouTube.https://www.youtube.com/watch?v=9DcRJD9rbbQLinks to an external site.

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