What is a Cash Flow Statement?

By Kevin Pike

Its a Financial Statement that records all the cash inflows and out flows over a defined period.

What does the Cash Flow Statement do?

It shows the company how much money they have used and generated. It helps them know what they used there money for and how much they made. It also shows them if they need to cut down on spendings or spend more on supplies.

Where does the Cash Flow Satement come from?

It comes from the balance sheet and income statement combined.

What does the cash flow statement show?

It shows how much money the comapny has made and used over a defined period of time.

Also it shows where the money is coming from and how it is spent.

Sections of the cash flow

Operating: This side shows how much money the company has made by itself without investments.

Investing: This section shows how much money the company has received or lost from its investing. It includes money that the company has made or lost by investing its cash in different types of investment.

Financing: This shows how much money the company has spent or recieved from its stocks or bonds.