compare cash fl ows from operating, investing, and fi nancing activities and classify cash fl owitems as relating to one of those three categories given a description of the items

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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compare cash fl ows from operating, investing, and fi nancing activities and classify cash fl ow
items as relating to one of those three categories given a description of the items

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Step 1

The cash flow statement a statement which provides information of a company’s cash receipts and payments during a specified period of time. This information is useful for the creditors, investors, analysts, etc. to evaluate a company’s liquidity and solvency

Part s of the Cash Flow Statement

There are three components of the Cash Flow Statement:

1. Cash Flow from Operating Activities: This derived from the day-to-day activities of a company.

 

  • Examples:- sale of inventory, cash receivables, commission and service fees etc 
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