Cash Flow Statement
Ross Roll, Trent Eoias, Chance Deaton
What does a Cash Flow Statement do and where does it come from?
- It records the company's cash inflows and cash outflows over a defined period of time
- Usually derived from the income statement and balance sheet
What does it show?
- This financial statement shows where the company's cash originated
- How the company used its cash
- And if the company has enough cash to return its loans and continue to operate.
Sections of The Cash Flow Statement
- Operating Cash Flow
- Investing Cash Flow
- Financing Cash Flow
How does a Cash Flow Statement work?
It follows the cash basis where only actual cash inflows and outflows are recorded.