Cash Flow Statement & Example Templates

Cash flow statement has an important role in accounting cycle. That can help to financial planners to prepare there plans for proper cash flow balance like cash inflow and outflow etc.

A cash flow statement is a financial statement that shows the inflow and outflow of cash for a business over a specific period of time, typically a month or a year. It provides information about how much cash is being generated or used by a company and helps investors, creditors, and analysts understand a company's financial health and liquidity.

The cash flow statement is typically divided into three main sections:

1. Operating activities: This section includes the cash inflows and outflows from a company's core business operations, such as sales, expenses, and changes in working capital.

2. Investing activities: This section includes the cash inflows and outflows from a company's investments in long-term assets, such as plant and equipment, and investments in other companies.

3. Financing activities: This section includes the cash inflows and outflows from a company's financing activities, such as issuing new debt or equity, repaying debt, or paying dividends to shareholders.

The cash flow statement is an important tool for understanding a company's financial performance and is often used in conjunction with the income statement and balance sheet. Together, these three financial statements provide a comprehensive view of a company's financial position and performance.