Statement of Cash Flows-A Dentist's best Friend
Why is the Statement of Cash Flows (SOCF), which is crucial to evaluating the health of a dental practice, seldom used? The SOCF is one of the three financial statements the dentist (or any business owner) should be reviewing, but tends to skip over. The other two statements are the Balance Sheet and the Income Statement (Profit and Loss). Why not rely on the "bottom line" of the Income Statement? Can't this show the health of a dental practice? The "bottom line" or net i
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