WHAT IS IT?

A statement of cash flows is a financial statement that gives an overview of all cash inflows and outflows, from operations, investing and financing activities.

HOW TO USE IT?

A statement of cash flows helps evaluate the company’s worth.

Each cash flow statement needs information about transactions from:

1. Operating activities

• Sale of goods
• Inventory purchases
• Wages

2. Investing activities

• Sale of assets
• Purchasing of assets

3. Financing activities

• Borrowing
• Loan Payments
• Stocks