Interpreting the Statement of Cash Flows-Massa Corporation

Interpreting the Statement of Cash Flows-Massa Corporation
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Interpreting the Statement of Cash Flows-Massa Corporation
The statement of cash flows contains information on the three parts namely; operating, investing, and financing activities. It applies the accrual basis of accounting. The operating activities part has items used in the normal business and reconciles the net income by adding and deducting items, while the other two sections deal with investing and financing items. In our analysis, we shall cover questions 2, 3, and 4, by reviewing and commenting on the items contained in the operations section.
The cash from operations was greater than the net loss from continuing operations. The difference is brought about due to the reconciliation of items on a cash basis of accounting in the cash flow statement, while the income statement records them on an accrual basis. Under the operations part, only the revenue that is received is added while expenses are deducted when ...