Trump Ltd Research Paper Example | Topics and Well Written Essays - 1500 words

Trump Ltd - Research Paper Example expense is utilized. Normally prepayments are made for items like rent of premises and payments are of current nature expense.First it necessary to define what is cash flow statements. Cash flows are useful addition to financial statements which describe the users that how much cash is there in the company. The statement shows the users that how much cash is out flowed and how much the company has received from there different activates.As we know that any company survival in the fast changing and tough competition environment, depend upon its ability to generate cash. cash flow accounting direct our attention toward this curtail issue.Cash flows full fill the needs of all users. Such as management will able to take more effective decision when they will know that what amount of cash will be present in the company. Management will be help through the cash flow forecast in taking expansion and investment decisions.... According to prepayments concept amount paid in advance for any expense will be treat as an asset until the expense is utilized. Normally prepayments are made for items like rent of premises and payments are of current nature expense. Discussion on cash flow forecast: First it necessary to define what is cash flow statements. Cash flows are useful addition to financial statements which describe the users that how much cash is there in the company. The statement shows the users that how much cash is out flowed and how much the company has received from there different activates. The main advantages of using cash flow forecast are as follow As we know that any company survival in the fast changing and tough competition environment, depend upon its ability to generate cash. cash flow accounting direct our attention toward this curtail issue. Cash flows are more comprehensive than accounting profits which are dependent on accounting concepts and conventions Cash flows forecast are easier to prepare and as well as more useful the profit forecast. Cash flows full fill the needs of all users. Such as management will able to take more effective decision when they will know that what amount of cash will be present in the company. Management will be help through the cash flow forecast in taking expansion and investment decisions. Cash flow forecast will be helpful for providing comparison with actual cash flows to see what variances has been incurred. Cash Flow Statement as on 31 Dec 2006 Month 1: Operating Activities cash from customers 6250 cash paid to staff wages -10000 interest paid ( 7% of 100000)/12 -583 cash