We have seen many companies are separating their business division to the different entities and many times, those different entities are getting managed differently. We also consider such step of the management as a shareholder-friendly and value creation for the shareholders of the company.
In this issue, I am going to explain what demerger is and how it can impact the financial of a company?
For Detail Issue, Click here —> SIMPLE IS BETTER – ISSUE -14 – DEMERGER
We have seen profit and loss account in Issue-8, Balance sheet in Issue-9 and Relationship between balance sheet and profit & loss account in Issue-10. After understanding of Profit & loss account and Balance sheet, we move forward to the third financial statement in the current issue that is “Cash flow statement”.
“The cash flow statement shows how much cash comes in and goes out of the company over the quarter or the year.” – Investopedia
For Detail Issue, Click here —> SIMPLE IS BETTER – ISSUE -11 – CASH FLOW STATEMENT