Cash Flow Statement

A cash flow statement tracks a business’s cash inflows and outflows over a specific period, divided into three sections. Operating Activities cover cash from core income-generating operations, including cash equivalents like current assets and liabilities. Investing Activities reflect cash flows from buying or selling long-term assets, such as equipment or property. Financing Activities involve changes in equity capital or borrowings, like issuing shares or repaying loans. Together, these sections provide a clear picture of how a company manages its cash, revealing its financial health, liquidity, and ability to fund operations, investments, and obligations effectively over time.