Saturday, February 9, 2013

Format of the Statement of Cash Flows

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements. This statement must report information about a company’s cash receipts and cash payments during the period. Exhibit 16.5 shows the usual format. A company must report cash flows from three activities: operating, investing, and financing. The statement explains how transactions and events impact the prior period-end cash (and cash equivalents) balance to produce its current period-end balance.

EXHIBIT 16.5Format of the Statement of Cash Flows
 



No comments:

Post a Comment