Cash Flow Statements

XACC 291

The cash flow statements are required in any business's annual reporting because it explains necessary information for anyone interested including investors, employees, and third parties like lenders who make big changing decisions about the companies. The cash flow statement shows the company and outsiders a basis for a cash flow analysis. This is important because it shows how much actual cash a company has generated, it explains if and how the company is able to pay for its operations and future growth.

There are several ways a company can generate cash and so the cash flow statement is divided into three sections. The three cash flow statements show the cash flows from operations, financing, and investing, the sections on operations and...