What are the benefits of having a cash flow statement

The following are some of the benefits of having Cash flow information:

• The cash flow statement when used in conjunction with the rest of the financial statements provides information that enable users to evaluate (a) the changes in net assets of an enterprise; (b) its financial structure(including liquidity and solvency) and (c) its ability to affect the amounts and timing of cash flows in order to adapt to changing circumstances and opportunities
• The cash flow statement is useful in assessing the ability of the enterprise to generate cash and cash equivalents and enable users to develop models to assess and compare the present value of the future cash flows of different enterprises.
• The cash flow statement assists in enhancing the comparability of the reporting of operating performance by different enterprises because it eliminates the effect of using different accounting treatments for the same transactions and events.
• Historical cash flow information is often used as an indicator of the amount,timing and certainty of future cash flows.
• Useful in checking the accuracy of past assessments of future cash flows and in examing the relationship between profitability and net cash flows and the impact of changing prices