BUS206 Quiz: Accounting Unit 4 Challenge 3 Cont
Document Summary
Before we begin our discussion on the statement of cash flows, let"s take a step back to review the definition of financial statements. These are reports providing financial information about a business at a given time. The statement of cash flows, then, is a financial statement that reports cash receipts and cash payments for a specific period, providing information about the business and cash. The statement of cash flows can be thought of as a modified income statement. Investing: sale or purchase of long-term assets, loaning money, and collecting principal of monies loaned: financing: cash from financing and cash paid to owners, statement of cash flows formula. We add all three of these together--the cash flow from operating, cash flow from investing, and cash flow from financing--to provide the net change in cash over the period. To calculate this, we start with our net income and make what we call.
