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The statement of cash flows, also called the cash flow statement, is the fourth general-purpose financial statement and summarizes how changes in balance sheet accounts affect the cash account during the accounting period.
Let's take a closer look at what cash flow statements do for your business, and why they're so important. Then, we'll walk through an example cash flow statement, and show you how to create your own using a template.
The cash flow statement reports the cash generated and spent during a specific period of time (e.g., a month, quarter, or year). The statement of cash flows acts as a bridge between the income statement and balance sheet by showing how cash moved in and out of the business.
Aug 9, 2024 · A cash flow statement summarizes the amount of cash and cash equivalents entering and leaving a company. The CFS highlights a company's cash management, including how well it generates cash.
Mar 27, 2023 · Examples of a Cash Flow Statement. To present a clearer picture of the two methods, there are some examples presented below. Calculated Using the Direct Cash Flow Method. An example of the cash flow statement using the direct method for a hypothetical company is shown here:
May 12, 2023 · Cash Flow Statement: Explanation. A company’s cash flow statement shows the movement in cash items that takes place over a given financial period. The aim of preparing a cash flow statement is to reconcile the company’s opening cash position with its closing cash position.
Apr 18, 2024 · What is Cash Flow Statement? The Cash Flow Statement (CFS) is a financial statement that reconciles net income based on the actual cash inflows and outflows in a period.
