Components of a Cash Flow Statement
Not what you're looking for?
What is included in each section of the statement of cash flows?
What does each section tell you about the company?
Which of the three classifications of activities included on a statement of cash flows is the most important?
Purchase this Solution
Solution Summary
The solution gives 431 words to explain what each section of a statement of cash flows tells you about a company and are the most important.
Solution Preview
The cash flow statement is partitioned into cash flow resulting from operating activities, cash flow resulting from investing activities, and cash flow resulting from financing activities.
a. Operating activities
Operating activities include the production, sales and delivery of the company's product as well as collecting payment from its customers. This could include purchasing raw materials, building inventory, advertising and shipping the product. Examples of activities under the operating section include:
- Cash collection due to receivables
- Cash payments due to payables and inventory purchase
- Other cash expenses due to operating activities
b. Investing activities
Investing activities focus on the ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media