What is the cash flow statement❓

For this article, we will present about the statement of cash flows that this is and what it is used for to leave each other. If you're ready, let's go see it.

🔸 Get to know cash flow statement

The cash flow statement is what matters in the financial statements. that want to show in the cash section and make a cash report It displays all cash entry and exit activities and includes items in cash equivalents.

🔸What does the cash flow statement consist of?

The statement of cash flows can be classified into 3 types as follows:

1. Cash flow from operating activities

It is the cash flow generated from generating income for the business. If the cash flow from operating activities is positive That's a sign that you're making money back from doing business. The cash received from operating activities is the cash received from the sale of goods. or providing services to customers And in the part of the cash that has been paid from activities in the operation is the payment of cash to the products that have been paid. Salary paid to employees

2. Cash flow from investment activities

It is part of the cash flow arising from the acquisition and disposition of long-term internal assets and investment funds of the Company. or it may be able to tell that the invested activity is trading on a certain asset. Usually, cash flows are generated by negative investment activities. The cash received from investment activities such as buying assets. for example computer equipment Mobile phones, etc., and in the part of the cash that has been paid from investment activities such as selling products for example machine sales computer equipment, etc.

3. Cash flows from financing activities

In this section, it is the cash flow generated by activities that have caused changes within the organization. or in making money Whereas finding money in this form can come from 2 channels: from the owner or from the creditor. and if you then make a loan or have a refund to the bank That's what financing activities are. The cash received from financing activities, such as the increase of capital from the owner. Make a loan from a bank, etc., and the cash paid from the financing activities is paid in dividends. Paying back to the person who made the loan

How are you? Hope this article will be useful for all readers and see you in the next article.

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