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    What information does a cash flow statement provide?

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    What information does a cash flow statement provide? Using an example, explain the direct and indirect methods for calculating cash flows from operating activities.

    With references.

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    https://brainmass.com/business/statement-of-cash-flows/what-information-does-a-cash-flow-statement-provide-156411

    Solution Preview

    Dear Student,

    The cash flow statement reports the cash generated and used during the time interval specified in its heading. The period of time that the statement covers is chosen by the company.

    The cash flow statement organizes and reports the cash generated and used in the following categories:

    1. Operating activities - converts the items reported on the income statement from the accrual basis of accounting to cash.
    2. Investing activities - reports the purchase and sale of long-term investments and property, plant and equipment.
    3. Financing activities - reports the issuance and repurchase of the company's own bonds and stock and the payment of dividends.
    4. Supplemental information - reports the exchange of significant items that did not involve cash and reports the amount of income taxes ...

    Solution Summary

    What information does a cash flow statement provide? Using an example, explain the direct and indirect methods for calculating cash flows from operating activities.

    $2.19