Cash Flow Statement Homework Help
Cash flow statement is one of the major financial statements. A company shows the inflows and outflows of cash within a set period.A cash flow statement mainly focuses on the activities that create and use cash. Those activities are operations, investment and financing.
A cash flow statement includes three main categories
- Operating activities: All the details related to revenue of a company come under this category. Revenue in operating activities can come from the product or service sales, commissions, supplier and lender invoices and payroll, etc.
- Investing activities: This category comprises information of the money spent by a company to acquire a long term asset or vice versa.
- Financial activities: These are the activities that make change the equity or borrowings of a company. It can happen if a company sales its shares or repurchases it.
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