Cash Flow Statement is one of the financial statements included in the annual report of the company followed by Balance Sheet and Income Statement. However, unlike others, this financial statement is prepared on cash basis only, thus providing information relating to the cash position in the company. The Cash Flow Statement is divided into three sections, namely:
Cash Flow from Operating Activities:
This is the first section in the cash flow statement and includes cash inflows and outflows resulting from the operating activities of the company. By the end, the reader is able to judge if the company is able to generate cash from Continue reading...