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Statement of Cash Flow

Introduction

Cash flow statement is one of the very important statements prepared by firms . The cash flow statement enlists the details of cash generated or utilized by operations , investing activities and financing activities The conventional final financial statements including balance sheet and income statements have less capacity in capturing the timing and extend of cash flows in a firm . The important component of cash flow statement thus enables users to assess cash performance in a better way . Although

br many stakeholders demand to analyze the financial statement each for own reason , the statement plays a significant role to investors , tax officials , lenders and the management (Pinson , 2008

Thesis statement

The conventional financial statements scantly capture the timing and extend of cash flows in a firm . Cash flow statement becomes the refuge in expounding the short and long-term prospects of a firm which effective outside review displays viability of a firm

Cash flow statement

Cash flow statement is a financial statement designed to provide details of timing and the extent of cash flows within a firm . The statement has three segments of cash flows . These are the cash flow operating activities , investing activities and financing activities . The Statement of Cash Flow (SCF ) adapted through the Financial Accounting Standards Board (FASB ) 1987 Statement No . 95 for SCF to become part of the financial package disclosed by management was provide investors and creditors the highly valued information the firm 's cash receipts and cash disbursements...