Analysis Intermediate: Understanding the Statement of Cash Flow

Introduction to Understanding the Statement of Cash Flow Importance of the Statement of Cash Flow The Statement of Cash Flow vs. the Income Statement Format of the Statement of Cash Flow The Statement of Cash Flow: Operating Activities The Statement of Cash Flow: Investing Activities The Statement of Cash Flow: Financing Activities Summary of Understanding the Statement of Cash Flow
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Summary of Understanding the Statement of Cash Flow

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Summary of Understanding the Statement of Cash Flow

It is important to read the cash flow statements of companies in which you are interested because they give a clear picture of the companies’ financial operations. How a company handles its cash flow affects the performance of its investments. The statement of cash flow can give you an insight as to whether a prospective investment is better suited as an income or growth investment. Combined with other analytical tools, reviewing the statement of cash flow will help you make wiser investment decisions.

Want to find the cash flow statements of potential companies to invest in? They will be included in those companies’ annual reports.

What you have learned

  1. Importance of the Statement of Cash Flow
  2. The Statement of Cash Flow vs. the Income Statement
  3. Format of the Statement of Cash Flow
  4. The Statement of Cash Flow: Operating Activities
  5. The Statement of Cash Flow: Investing Activities
  6. The Statement of Cash Flow: Financing Activities

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