Investigating Financial Statements
• Statement of Cash Flows o Demonstrates the sources of cash flow for the company as well as the uses of cash at the company o While an income statement can tell you whether a company made a profit, a cash flow statement can tell you whether a company generated cash o Based on the income statement and balance sheet of the company
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Investigating Financial Statements
• Statement of Cash Flows o Bottom line of the cash flow statement shows the net increase or decrease in cash for the period o Cash flow statements consist of three main parts:
• Cash flow from operating activities • Cash flow from investing activities • Cash flow from financing activities
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