Discussion 2: Cash Flow and Financial Analysis Part 1: Importance of Cash Generating cash is the ultimate responsibility for managers today. Cash and cash flow are considered the "lifeblood" of a busi

Discussion 2: Cash Flow and Financial Analysis

Part 1: Importance of Cash

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

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.

https://courses.lumenlearning.com/boundless-accounting/chapter/overview-of-financial-statement-analysis/

Respond to at least 3 of your classmates’ posts no later than the last day of Module 2. In your response to your classmates, consider comparing cash generation techniques at your company versus his or her company. Draw distinctions based on the industry and tell your colleagues why those distinctions are necessary for the management of cash flow.