Yes, It is true that highly profitable firm can have a bad cash flow statement.
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Small business owners explore their cash flow statements in order to maintain a handle on the central cash position of their firm. Still a profitable firm can be cash-poor. Getting ready a cash flow analysis helps keep up a healthy cash flow for the small business firm.
Try out the following link:
http://bizfinance.about.com/od/statementofcashflows/tp/cashflowtips.ht m
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