Explain how you use P&L statements, cash flow and ageing summaries to manage issues that will affect the organisation’s ability to meet objectives. 

Answer:

We can use profit and loss statement to meet with the objectives while understanding the total revenues and expenditure along with the total net income and the ability of the company to maximize the rate of return. profit and loss statements will also reflect the ability of the company to derive the higher income and meet with the desired objective of maximizing the rate of return.

Cash flows will be helpful in understanding the total equity which will be available in the hands of the company in terms of the cash and cash equivalents and it will help the company manages to manage with the total cash flow from operations in a different perspective like as cash flows from investing along with cash flows from operating activities and cash flows from financing activities so it will help the managers to utilise the cash in perspective of meeting up with the desired objectives.

Ageing summary will be reflecting the management of the account receivable in the ability of the company to deal with the liquidity and receive the account receivable as quickly as it can in order to meet with the desired objectives and have adequate liquidity and maximize the rate of return.