Abstract:

Business managers are always evaluating cash flows for their business. Traditionally cash flow measurements have focused on those items that people external to the business management think are important. Some of the measurements that will be discussed include: free cash flow; net cash flow; owners’ excess cash flow and the Statement of Cash Flows. This paper proposes a method that will show the effects on cash, of management decision making, through modifications of the Statement of Cash Flows designed for internal use in a business.