Cash Flow Statement

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Cash Flow Statement

There are four parts of the Statement of Cash Flows ( or Cash Flow Statement):

Operating Activities

Investing Activities

Financing Activities

Supplemental

1- Operating Activities : Converts items 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 purchase of the company's own bonds and stock and payment of dividends.

4- Supplemental Information : reports exchange of significant items that do not involve cash and reports the amount of income taxes paid and interest paid.