Statement of Cash Flows

The Statement of Cash Flows is a financial report that shows how money moves in and out of a business over a specific period. It details the cash earned from operations, money spent on investments (like buying equipment), and cash received or paid in financing activities (like loans or dividends). This statement helps assess the company’s liquidity and ability to generate cash, providing insights into its financial health beyond just profits. It complements other financial statements by showing the actual cash flow, which is crucial for understanding the company's real-time financial stability.