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Three Major Activities on the Statement of Cash Flows

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In detail, Describe the three major activities the statement of cash flows reports. Cite examples of cash flows for each activity.

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A key to the success of being a good investor is to understand the statement of cash flows. There are three major activities of the statement of cash flows.

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Accounting
In detail, describe the three major activities the statement of cash flows reports. Cite examples of cash flows for each activity.

The statement of cash flows provides details on the actual cash the company generates. The statement of cash flows is a key tool for investors. The income statement may show that the company is making a profit. However, the company may falter because it was not able to generate sufficient cash flows. The three elements of the statement of cash flows are cash flows from operating activities, cash flows from investing activities and cash flow from financing activities. ...

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