A friend who started a business during the last year has come to you with the following statement: "My accountant is preparing our first financial report and she told me one of the statements was a Statement of Cash Flows. She also told me that my business is facing cash flow problems."
Instructions
Prepare a reply to your friend. Include three causes of cash flow problems and solutions to solve the cash flow problems. Explain how the Statement of Cash Flows will assist in managing the business.

Question

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The Answer of A friend who started a business during the last year has come to you with the following statement: "My accountant is preparing our first financial report and she told me one of the statements was a Statement of Cash Flows. She also told me that my business is facing cash flow problems."
Instructions
Prepare a reply to your friend. Include three causes of cash flow problems and solutions to solve the cash flow problems. Explain how the Statement of Cash Flows will assist in managing the business.

A Friend Who Started a Business During the Last Year