Can you help me respond to this post

A cash flow statement is critical because it helps management analyze the organization's finances. It helps determine whether there is enough cash flow to cover expenses such as payroll. It is also beneficial to compare the operating activities expenses to the net income. If the cash reported is higher than the net income, that is a good sign for the company. Non-cash items are added back to the profit in order to have a near actual expenses incurred. We also need to adjust the net income figure so it is not reduced by the depreciation expense. This is why we add non-cash items back. The profit then ends up showing a smaller number. A company can have a positive net income but a negative cash flow from operating activities because net income can be increased by non- cash items that don't affect cash flow. Cash flow can be decreased by actual cash payouts that might not be considered an expense deduction for net income. Some non-cash activities are mentioned in the statement of cash flow because they may have a significant impact on the current and future performance in terms of revenue, profits, and the ability of the organization to produce positive cash flows. One example may be issuance of stock to retire a debt.