What do you mean by cash flow statement?

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A cash flow statement is a financial statement that shows the inflows and outflows of cash during a specific period.

It provides information about the sources and uses of cash in a business.
It helps in assessing the liquidity and financial health of a company.
The statement is divided into three sections: operating activities, investing activities, and financing activities.
Operating activities include cash flows from day-to-day business operations, such as sales and expenses.
Investing activities include cash flows from buying or selling assets, like property or equipment.
Financing activities include cash flows from raising or repaying capital, such as issuing stocks or paying dividends.
The cash flow statement helps in analyzing the cash position, cash flow trends, and cash flow adequacy of a company.
It is an essential tool for investors, creditors, and management to make informed financial decisions.

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