Modeled Information Creates Sense in the Real World - A $1,000,000 suitcase

Some things are easy to catch on and remember. If you go to school for business or major in business, you get to learn about cash flows. In the textbooks, it’s a major concept and term that appears in a few chapters. If you read a little more, it’s part of a statement, called ‘the statement of cash flows.’ The term seems sort of boring, but if you watch MSNBC, you hear about it here and there. You probably think about ROI, dividends, and others.

There, it is said with some ambiguity. A word that is said multiple times, without real good recollection of its formality in texts. You and some accountants might say it’s too vague. It, also, doesn’t give us exact transactional information, but in actuality it helps give a better idea of a company and how it uses its money. That’s if your thinking and have a good sense of financing activities, operating activities, or some investing activities. We want companies using cash flow with some purpose.

A lot of people want to know, where each penny goes, but getting a better understanding of the categories, provides a reasonable basis for the behavior of a company. It might sound like it doesn’t, but it all adds up to a real vivid understanding of a company. But who really invests anyways? Even some professors won’t invest.

This might sound like a skill and talent for some of the most educated financial analysts, but in fact leads to some important information of their company. It might sound odd, but we want a company balanced and ethical. We want a nice place that helps send our kids to school. Cash flow is a practice for a lot of organizations, even churches. The net amount of cash and cash equivalents being transferred in-and-out of a company gives us a great idea, among others who might be the same—It’s not always about who got the money. As such, There’s always a reasonable way to go about with some business.

------------