Explain a cash flow statement

Question

Accepted Answer

A cash flow statement is a financial statement that shows the inflows and outflows of cash in a company over a specific period of time.

It provides information about the cash generated from operating activities, investing activities, and financing activities.
Operating activities include cash received from sales, payment to suppliers, and payment to employees.
Investing activities include cash used for purchasing or selling assets, such as property, plant, and equipment.
Financing activities include cash received from issuing stocks or bonds, and cash used for paying dividends or repurchasing stocks.
The cash flow statement helps assess the liquidity and financial health of a company.
It is an important tool for investors, creditors, and management to evaluate the cash flow position of a company.

Accepted Answer

First we start with net income, proceed line by line while making adjustments to arrive at cash flows from operation. Now you will mention capital expenditure, purchase of intangible assets. Purchase or sale of investment securities and asset sales to arrive at cash flow statement

Explain a cash flow statement

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