This assignment will help you practice cash flow statement creation for an imaginary business, while considering relevant questions such as key elements in reviewing a cash flow statement, its target audience, and its update frequency.
Deliverables
1-page summary
Activity Details
Perform the following steps:
Step 1: Develop an idea for an imaginary company.
Imagine the following scenario: you are starting a food truck business from scratch. You will need to purchase a truck, equipment, and supplies for your business. For now, you are your business’s only employee.
Step 2: Write a summary.
Using the above scenario, write a 1-page summary that explains and gives examples of how you will develop a cash flow statement for your business.
In your summary, be sure to address the following questions:
What are some key elements to identify in reviewing a cash flow statement?
How often would you have to prepare a cash flow statement?
Who would want to see it and why?
Step 3: Save and submit your assignment.
When you have completed the assignment, save a copy for yourself in an easily accessible location and submit a copy to your instructor below using the Submit Paper link.