How I learned Cash Flow in half an hour

I have seen people talk a lot about wanting to make a career in Finance. But when it comes to testing their knowledge in Finance, they fumble and start Googling even small things such as what is Financing Activities of a company or where do we place Revenue generated from Operating Activities and how and where to place Depreciation and Purchase of Fixed Assets bought for the year ended in Financial Statements of a company. Being just like one of you, I also faced the same situation. In fact, I didn’t know how to solve my basic fundamental problems in Finance. Until one day I chanced upon an article in Finance online that changed my life totally, making me a complete professional in Finance, at least better in handling a complicated Cash Flow. So, what was it that got me this great confidence of handling a mind-boggling Cash Flow?

Well, it was the question, the most important one: Why does a company have to make a Cash Flow Statement? Or what problems might a company have to face if it failed to show a correct Cash Flow? Is it law that makes a company mandatory to include the Cash Flow statement in its Financial Statements? I started asking these questions constantly to myself. And then the inevitable happened. With a pile of questions of 12th grade from the internet and about 50 plus case studies of Cash Flow, I finally learned how to prepare Cash Flow. Now of course, one might argue that I must have have taken a couple of days until I learned Cash Flow thoroughly. The honest answer to this question is yes. Yes, it took me about 10 days to solve those complicated questions and case stories. But it also thrilled me. In fact, I would rather put it this way that I learned Cash Flow in half an hour because the curiosity that got me going for a long time did its real magic in half an hour only. It literally made me think through a lot of things I would otherwise have not known of. It made me think in such a way like it never did before. Trust me!

Today, I have been helping a few colleagues of mine learn Cash Flow. And believe me, although they call themselves professionals in Finance (No I ain’t bitching), Cash Flow still seems to be alien to them. It is with after this two months’ hard work that helped them learn Cash Flow. I believe anyone can learn Cash Flow provided one is willing to learn it with a great intensity and of course, a purpose to solve a problem not just in a company but also in one’s own Financial life too. Hope you understand it and give it a quick real shot today!

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