Define the 3 sections of the Cash flow Statement without copying straight from the text. - Cash from Operating Activities - Cash from Financing Activities - Cash from Investing Activities
Define the 3 sections of the Cash flow Statement without copying straight from the text. - Cash from Operating Activities - Cash from Financing Activities - Cash from Investing Activities
Define the 3 sections of the Cash flow Statement without copying straight from the text. - Cash from Operating Activities - Cash from Financing Activities - Cash from Investing Activities
Define the 3 sections of the Cash flow Statement without copying straight from the text.
- Cash from Operating Activities
- Cash from Financing Activities
- Cash from Investing Activities
Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).
Expert Solution
Step 1
Cash flow statement has been divided in three parts :-
(i) Cash flow from operating activities
(ii) Cash flow from investing activities
(iii) Cash flow from financing activities.
By subdividing the cash flow in three parts , we can take reasonable right conclusion about from where the cash is coming in and where cash is going out.
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