Investing for Beginners , investing Your success in investing will depend in part on your character and guts, and in part on your ability to realize at the height of the ebullience and the depth of despair alike that this too shall pass.
John Bogle

Cash Flow Statement


Cash flow statement is one of the three main financial statements (others are income statement and balance sheet). If income statement exposes income that was received according accounting standards, cash flow statement provides summary information about real cash payments that company was sending out or receiving.


There are two types of cash flow statement (direct method and indirect method) and those are completely different to read. However, cash flow statement may signal if company could be facing the shortage of cash and cannot continue its activity without problems. 


Cash flow statement provides information about cash flow movements in three segments:

  • Cash flow from operating activities includes received and paid cash from main company’s activity.
  • Cash flow from investing activities reports payments from sold and purchased long term investments
  • Cash flow from financing activities covers new borrowing or borrowing that was repurchased, dividends, stock issues or stock buybacks and similar financial activity.



Last searches: REIT , penny stocks , Loan ratio , return yield , return yield , investment management process , investment management process , contact , wacc , wacc , investing , investment , beginners , stocks