Cash flow statement helps us understand the actual flow of cash in the business for a year. Cash Flow statement is divided into three parts - cash flow from operations, cash flow from investments and cash flow from financing. Cash flow from operations includes the cash inflow and outflow related to the main operations of the business. Cash flow from Investments is generally an outflow and includes cash spent on investing in property, plant, and equipment. Cash Flow from financing provides us with details of how the company is financed in that year - debt or equity or both?
Top topics covered in this cash flow statement section are as follows -
How to calculate Cash Flow from Operations?
How to calculate cash flow from investing?
How to calculate cash flow from Financing?
Steps to do cash flow analysis
What is a fund flow statement?
Differences between the Direct and indirect method of calculating cash flow from operations?
What is the difference between cash flow and net income
What is the difference between the cash flow statement and fund flow statement?
Direct method of cash flow in operating activities includes the cash being received from the customers and the cash paid to the suppliers, and others, whereas Indirect method of cash flow uses net income as the base and does the adjustments needed, i.e adding and subtracting the variables to convert the total net income.