The cash flow statement is a financial report that shows the amount of cash that comes in and goes out of a business over a specified period.
It provides a comprehensive picture of a company’s liquidity by taking into account its operating, investing, and financing activities. The operating cash flow indicates how much cash a business generates from its primary activities, such as sales and purchases, while the investing cash flow shows how much it spends on investments. The financing cash flow represents the amount of cash received or paid for the business’s financing activities, such as issuing stocks or repaying loans.