Cash Flow Statement

A cash flow statement is a financial statement that includes all of the firm’s cash inflows and outflows. Cash inflows include funds from current operations as well as profits from external investments. Cash outflows include money spent on business activities and investments made during that time period.

The cash flow statement is one of the most important financial statements because it shows how much cash a company generates and how it uses that cash to expand. It is divided into three sections based on the source of acquisition. They are funds from:

  • Operations: This is the primary source for a company to generate cash. It includes the cash flow of all operational activities that lead to revenue and expenses.
  • Investments: This includes cash flow due to investments in property, plant, equipment, and securities.
  • Financing: This includes cash flow between a company, its shareholders, and its creditors.
BznsBuilder for Programs

Write your business plans twice as fast and twice as easily!

Try BznsBuilder for free.

No credit card required, no software to install.