Cash Flow Statements

A cash flow statement is a financial document that shows how cash moves in and out of a business over a specific period. It highlights three main activities: operating (day-to-day business operations), investing (buying or selling assets), and financing (borrowing or repaying debts). This statement helps stakeholders understand the company's liquidity, revealing whether it can meet its short-term obligations. By analyzing cash inflow and outflow, investors and managers can assess the financial health and sustainability of the business, aiding in informed decision-making.