Intro to Business › Section N · Financial information and accounting › Topic N.5
The statement of cash flows
A business pays its staff, suppliers and lenders in cash, not in profit. The statement of cash flows shows where a firm's cash came from and where it went, and it often reveals trouble that the income statement hides.
In this topic
- Why cash gets its own statement
- What the statement shows
- Operating activities
- Investing and financing activities
- From net income to operating cash
- Worked example: Kestrel's operating cash
- Worked example: completing the statement
- Reading the pattern
- Transactions with no cash
- Common mistakes to avoid
- Key takeaways
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