Nonprofit and for profit company

What are the most used and most important financial statements in a nonprofit and for profit company? Why, be very detailed.

Essential Activities:

1. Review the Starbucks Annual Report.
2. Watching the videos,The Key to Understanding Financial Statements and Financial statements, will assist you in writing this discussion forum.

Notes:

1. Please refer to the discussion forum rubric on the start here tab for this assignment.
2. Initial discussion forum is due by Wednesday and responses to two of your classmates are due by Saturday.
3. Each week to earn full points on the discussion forums, make sure to include outside sources to support your discussion.
4. Ensure that you are citing and referencing your work in APA format.

Answer preview

Statements of cash flow are also vital for nonprofit organizations as they provide a snapshot of cash inflows and outflows over a given period (Zietlow et al., 2018). These statements allow pinpointing of sources and uses of cash. For-profit organizations, cash flow statements provide critical liquidity and cash management insights. Assessing the sources and use of cash is facilitated by categorizing cash flows into operating, investing, and financing activities. Thus, for-profit organizations can foster efficient working capital management, investment decisions, and strategic planning (Zietlow et al., 2018). For nonprofit Organizations, these statements aid nonprofits in managing their financial resources effectively to support their mission-driven activities. Therefore, they can ensure proper resource allocation and utilization by tracking cash flows from donations, grants, program activities, and operating expenses (Fraser et al., 2016). Moreover, cash flow statements aid in planning for future initiatives by guiding decision-making to ensure maximum social impact.

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