How would you define a cash flow statement, what are its uses and what kind of information can we get from a cash flow statement? Furthermore, what is the most common structure or template for a cash flow statement?
It’s a statement that shows how the transactions made during the year affected the cash position of the company. It shows the cash inflows and outflows that relate to one of the following three categories:
1. Operating Activities
2. Investing Activities
3. Financing Activities.