Negative cash flow should be the most concerning sign for the CEO of the company.
What is the cash flow statement?
The cash flow statement is a statement that shows the company's cash inflow and cash outflow.
Cash flow from operations consists of expenditures incurred in the normal course of business. When the CEO of the company examines the company's cashflow statement, the most concerning indicator for him is the cashflow statement's negative balance. The negative cashflow balance indicates that the company's cash inflow is less than its cash outflow. It means that the company's cash outflow is greater than its revenue. This reflects the company's poor financial situation.
Therefore, as a result this is the most concerning indicator for the company's CEO.
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