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Understanding Financial Documents: Statement of Cash Flows

Share this page: Share Webmail / Other There are a number of different types of basic financial documents that a small business owner needs to understand. One of these is the statement of cash flows. The key to surviving in business is generating cash in order to keep operating. Owners and other interested parties need a financial statement that helps them understand the cash flow of a company. The statement of cash flows tells you where your cash came from and where it went. The statement of cash flows provides information about three categories of activities, including operating activities, investing activities and financing activities. As you can see in the simplified example above, a statement of cash flows tells you what came in and what came out. The above image is made available through: CreativeCommons.org Derivative by Athivia College (2010), Original materials: Collins, Karen., Exploring Business. Retrieved Apr 8, 2010 from http://www.flatworldknowledge.com/node/123782 . Collins, Karen. Exploring Business. 1969 . Flat World Knowledge. 8 Apr, 2010.