Cash Flow Statement/Analysis

Heather Talley

What it is

A financial statement that records a company’s actual cash inflows and cash outflows over a defined period of time.

What It Does

It shows projections for when the business will recieve cash and when cash will be needed to pay debts. It is important as it allows a business to make sure it has enough cash to maintain day to day operations.

Where it Comes From

For new companies, the data in the statements are projected figures based on industry standards and other reliable information. Companies already in business can use that information as well as their financial history to make projections.
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Sections in the Cash Flow Statement

Cash Coming In

Amount of cash coming in from daily operations.

Cash Going Out

Amounts being paid out for debts, rents, and other payments required for daily operations (Ex. salaries).

Net Cash Flow

The total outflow subtracted from the total inflow equals your net, or overall, cash flow.