Statement of Cash Flows 

The Statement of Cash Flows is one of the core financial statements of a business, showing the inflows and outflows of cash during a specific accounting period. It tracks how cash moves through operating, investing, and financing activities, offering a clear picture of a company’s liquidity position and ability to meet short-term obligations. Three main sections: 

• Operating activities: Cash generated or consumed from core business operations 

• Investing activities: Cash used for or generated from asset purchases, sales, and investments 

• Financing activities: Cash flows from equity issuance, debt financing, dividend payments 

Formula (indirect method for operating activities): 

Net Income    + Non-cash expenses (Depreciation, Amortization)    +/- Changes in working capital    = Net cash from operating activities