conclusion
The Last thing that we need to do is to verify that the cash flow identity holds to be sure that we didn't make any mistakes. from above, cash flow from assets is $87. cash flow to creditors and stockholders is $24 + 63 = $87, so everything checks out.Table 2.5 contains a summary of the various cash flow calculation for future reference.
as our discussion indicates, it is essential that the firm keep an eye on its cash flow. The following serves as an excellent reminder of why doing so is a good idea,unless the firm's owners wish to end up in the poorhouse.