#32 How to Read Cash Flow Statement || Explained
How to Read Cash Flow Statement ? A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1 The main components of the cash flow statement are cash from operating activities, cash from investing activities, and cash from financing activities. The two methods of calculating cash flow are the direct method and the indirect method.
How to Read Cash Flow Statement ? A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses. The cash flow statement complements the balance sheet and income statement and is a mandatory part of a company's financial reports since 1987.1 The main components of the cash flow statement are cash from operating activities, cash from investing activities, and cash from financing activities. The two methods of calculating cash flow are the direct method and the indirect method.