Cash Flow Management Article Review by Nicky

Cash Flow Management
A review of the article "Cash Flow" by C. Sprague.
# 148730 | 1,341 words | 1 source | APA | 2011 | US
Published on Nov 03, 2011 in Business (Finance, Investment and Banking)

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The paper reviews the article "Cash Flow" on cash flow management and offers a synopsis of the content as well as an analysis of the thesis' main point. The paper outlines the three supporting opinions/reasons and the three opposing opinions/reasons that the author provides. Finally, a summary and an opinion of the thesis is presented

Article Synopsis
Specification of Thesis's Main Point
Three Supporting Opinions/Reasons
Three Opposing Opinions/Reasons

From the Paper:

"Noting the importance of cash flow in the ability to not only pay for goods and services, but also the necessity of cash flow for organizations to take advantage of emerging opportunities, Sprague (2008) explores the topic of cash flow management within organizations. This exploration begins with a history of business cash flow reporting. Organizations were originally required to file a funds statement, or a statement of the changes they realized in their financial position. In 1961, it was recommended that this funds statement be included in an organization's annual report to shareholders, alongside the income statement and balance sheet. Although not mandatory, many organizations saw its value and began to use the funds statement. In 1987, however, FASB No. 95 required the funds statement to be used instead of a general funds statement. This new requirement also standardized the format, which highlighted cash flow from operations, investing and financing.
"FASB No. 95 requires several cash flow measurements. These include: cash flow statements, cash flow from operations, cash flow from investments, and cash flow from financing. There are two methods for reporting cash flow from operations - the direct and the indirect method. The direct method reports inflows of cash and outflows from payment of expenses. "The indirect method which begins with the net income number, a mixture of cash (e.g. Cash proceeds from sales) and non-cash components (e.g. Depreciation) and removes non-cash or accrual items, then adjust for the cash effects of transactions not yet reflected in the income statement (e.g. cash payments for inventory not yet sold)" (Sprague, 2008, p. 2)."

Sample of Sources Used:

  • Sprague, C. (2008). Cash flow. Research Starters. Retrieved May 26, 2009, from EBSCO Research Starters.

Cite this Article Review:

APA Format

Cash Flow Management (2011, November 03) Retrieved November 29, 2022, from

MLA Format

"Cash Flow Management" 03 November 2011. Web. 29 November. 2022. <>