Selection sources information to evaluation of solvency is very important. Proper information and receive in due time can indicate firm for bankruptcy. A very important source is cash flow statement and cash flow projection.
Company is solvent if market value of its capital higher than its liabilities and if it is able to generate cash flow in the future to finance its development. Evaluation of financial performance of 13 companies representing construction industry in the years 1997-2002. In the article evaluated cash flow ex post. And the usefulness of analysis cash flow of analysis solvency.
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