A cash flow statement consists of three main components:
Operating Activities: The current income or expenditure, which initiate in business undertakings and include sales and cost.
Investing Activities: Money that relates to the use of assets either in buying or selling of other facilities, buildings etc.
Financing Activities: In following the actualization of its financial goals, funds that accrue from borrowing, repaying loans, or issuing of dividends are typical.
All contain information on distinct aspect of company’s cash flow transactions; thus, affording a broad perspective of its cash management plan.
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