• Provides information about cash inflows and

outflows during an accounting period.

• Provides information about cash inflows and
outflows during an accounting period. •
Focuses on Cash • Three sections to the
statement of cash Flows: 1. Cash flow from
Operating Activities 2. Cash flow from
Investing Activities 3. Cash flow from
Financing Activities
• While developing cash flow statement we need
information from balance sheet and income
statement
• All items are classified as either cash inflows or
cash outflows
• If an item represents a cash INFLOW
you ADD that item
• If an item represents a cash OUTFLOW
you SUBTRACT that item