Format of the Statement of Cash Flow

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Format of the Statement of Cash Flow

Below you will see an example of a typical statement of cash flow. You can see how it is broken down into three separate sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. The net increase (decrease) in cash is the sum of the three sections.

The Statement of Cash Flow

Notice that in this example, the firm generates its cash from its operating activities, which are used to fund its investing and financing activities. The firm’s cash balance decreased by $5 million.