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On a statement of cash flows for a provider of tutoring services, the cash flows from financing activities would include the money borrowed to purchase the furniture in the tutorial area and the interest owed on that debt.
The net movement of cash and cash equivalents into and out of an organization is referred to as cash flow. Outflows are represented by the money spent, while inflows are represented by the money received.
In order to fulfill your current financial responsibilities and make plans for the future, you need to have a positive cash flow. But for small firms, cash flow is a regular problem. Contrarily, cash flow statements offer a clearer account of the cash on hand. In other words, a business may look lucrative "on paper," but it may not have the cash on hand to restock its inventory or cover other pressing costs, like rent and utilities.
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