Reading About The Cash Flow Statement Of The Enterprise And The Bank Credit Approval

The cash flow statement is one of the three core statements of the financial statements (balance sheet, income statement, cash flow statement).The cash flow statement adopts the structure of report in accordance with the nature of cash flows and reflects the cash flows generated by the cash flows, the cash flows generated by the economic activities and the cash flows generated from investing activities and financing activities and finally, a summary of the net increase of cash and cash equivalents amount by the classification. At last, a summary reflects the net increase of the cash and the cash equivalents amount.The main purpose of the cash flow statement is to provide the users the information of the inflows and outflows of cash and cash equivalents of financial statements during the certain accounting period, in order to make the users of financial statements to understand and evaluate the enterprise’s ability to obtain cash and cash equivalents, and to predict the company’s cash flows in future. Corporate cash flows from operating activities, investing activities and financing activities constitute the first source of repayment of bank loans. That is to say, under normal circumstances, the repayment of the loan principal and interest entirely dependents on the customer’s own cash and not need to spend the ensure collateral or collateral.The cash flow generated by the business activities of enterprises indicates the long-term viability of the enterprise; cash flows from investing activities reflects the investment of the enterprise’s management vision; cash flow from financing activities is the ability of enterprises to raise funds from outside. From overall point of the bank funds, the loan is always in the reciprocating cycle in the issuance and recycling, but the loan of every enterprise need repaying. Banks must attach great importance to and focus on the capacity of enterprise’s last operating cash. Operating cash flow is the security of sustainable and healthy development and also the most important source of cash to repay the loan. Bank loans must be repaid in cash, rather than sales, earnings or profits, which just carry amount of data in the system based on accrual sales, earnings, or profits and may not be able to generate cash flow. Just cash flow can be used for repayment. Bank loans need to use future cash flow of the borrower to repay. So the banks are most concerned about is whether a company has the ability to provide the full amount of the cash payment of the principal and interest. Without enough cash flow, companies will not be able to cope with the day-to-day needs, the lack of cash flow and depletion will lead enterprises into the crisis of the collapse, the second source of repayment in the final analysis have also realized to repay the loan.This paper regards the cash flow statement as the target, using the theory of project management, system management comprehensively and adopting survey, documentary research, normative analysis, empirical analysis, qualitative analysis and quantitative analysis methods. Firstly, the origin, development and current application status and preparation of regulatory requirements are discussed on the statement of cash flows. Secondly, the paper puts forward understanding and analysis of corporate cash flow statement highlights during the banks’approval work in the credit. Thirdly, based on their own work experience, the paper makes an analysis and conclusion about how to analyze the statement of cash flows of different enterprises the highlights of the analysis.This paper makes innovative research in the following areas:Firstly, from the point of view of the bank credit approval, propose a holistic approach to the analysis of corporate cash flow situation; secondly, put forward the summary of different analytical methods of the cash flow in the different stages of development and different types of enterprises. Thirdly, the paper puts forward how the enterprises through cash flow analysis provide the bank goods and control and analyze the cash flow, furthermore puts the analysis and management measures to make sure the reasonable issue of the bank loans and the scientific management after the loads issue.