Cash Flow Statement/ Analysis
Similar to a budget. It projects when cash will be received and when cash is needed to pay debts. A business must have enough cash on hand to pay for its day-to-day operations.
What Does it Do?
The Cash Flow Statement/ Analysis allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent.
Where does it come from?
A cash flow statement comes from reports of the cash generated and used during a specific time interval.
What does it show?
The cash flow statement shows how much cash comes in and goes out of the company over the quarter or the year.
What sections are in the cash flow statement?
It includes three sections: operating cash flow, investing cash flow, and financing cash flow.