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the Cash Flow Statement

A cash flow statement is a financial report that describes the sources of a company's cash, detailing cash inflows and outflows over a specified time period. It is useful in assessing the amounts, timing, and uncertainty of cash flows.

Provides answers to

  • Where did the cash come from
  • What was the cash used for
  • What was the change in cash balance

The Sections

  • Operating activities
  • Investing activities
  • Financing activities

Sources of Information

  • Comparative balance sheet
  • Current income statement
  • Selected transaction data

Entity Name
Statement of Cash Flows
For the period Ended date
Cash flows from operating activities
Net income $ 320,750
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation expense $ 44,200
Amortization expense 14,500
Gain on sale of plant assets (3,600)
Increase in accounts receivables (14,560)
Decrease in inventory 18,300
Increase in accounts payable 1,200 93,040
Net cash provided by operating activities 443,790
Cash flows from investing activities
Sales of plant assets 33,000
Purchase of equipment (215,000)
Purchase of land 65,500  
Net cash used by investing activities (116,500)
Cash flows from financing activities
Payment of cash dividend (22,000)
Issuance of common stock 100,000
Redemption of bonds (30,000)
Net cash provided by financing activities 48,000
Net increase in cash 327,290
Cash at beginning of year 25,500
Cash at end of year $ 352,790
Non-cash investing and financing activities
Purchase of equipment through issuance of $25,000 of bonds