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Cash flow analysis helps creditors to determine the solvency position of the company. It shows the ability of a company to meet its financial obligations as they fall due. The creditors wants to make sure that they will be paid for their services or products supplied to the company. The investors are concerned about the ability of the company to meet its financial obligations hence able to continue in business and earn profits into the foreseeable future. The investors are also concerned about the company's ability to pay dividends.
Ben yator
kenya
Ben yator
kenya
1
0
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