Statement of Cash Flows

= provides information about the cash receipt and cash payments of an entity during the
period.
= It is a formal statement that classifies cash receipts (inflow) and cash payment
(outflows) into operating, investing and financing activities.

Cash flows from operating activities:

- Receipts from sale of goods and performance of services.
- Receipts from royalties, fees, commissions and others revenues.
- Payments to suppliers of goods and services, employees, taxes, interest and other
operating activities.

Cash flows from investing activities:

- Receipts from sale of property, plant and equipment.
- Receipt sale of investments in debit or equity securities.
- Payments to acquire property, plant and equipment.
- Payments to acquire debt or equity securities.
- Payments to make loans to others generally in the form of notes receivable.
- Receipts from collection of loans to others generally in the form of notes receivable.

Cash flows from financing activities:

- Receipts from investment by owners.
- Receipts from issuance of notes payable.
- Payments to owners in the form of withdrawals.
- Payments to settle notes payable.