The Cash Flow Statement tracks how cash moves in and out of a business, divided into operating, investing, and financing activities.
Can company pay bills
Strong cash flow indicates health
Plan for expansion
Capacity to pay dividends
Cash from daily operations
Example: Customer payments...
Buying/selling assets
Example: Equipment purchase...
Cash from investors/creditors
Example: Bank loans...
Operating CF - CapEx
Example: Cash available for investors...
From P&L
Depreciation
AR, AP, inventory
Core cash flow
Other activities