![]() ![]() The cash flow statement shows the source of cash and helps you monitor incoming and outgoing money. Incoming cash for a business comes from operating activities, investing activities and financial activities. This statement is one of the three key reports (with the income statement and the balance sheet) that help in determining a company’s performance. It is usually helpful for making cash forecast to enable short term planning. Reading Time: 5 minutes What is a cash flow statement?Ī cash flow statement is an important tool used to manage finances by tracking the cash flow for an organization.
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