{"id":62,"date":"2019-10-24T21:29:09","date_gmt":"2019-10-24T21:29:09","guid":{"rendered":"http:\/\/m6consultants.com\/blog\/?p=62"},"modified":"2020-07-11T17:59:00","modified_gmt":"2020-07-11T17:59:00","slug":"what-is-a-cash-flow-statement","status":"publish","type":"post","link":"https:\/\/m6consultants.com\/blog\/what-is-a-cash-flow-statement\/","title":{"rendered":"What is a cash flow statement?"},"content":{"rendered":"\n<p>As the statement itself suggests that it\nis a type of financial statement of a company which measures the flow of cash.\nIt tells the total flow of cash in and outside any company helps in calculating\nprofit and also measures the ability of a company to manage its cash for debt\nand other expenses. It has been a mandatory element in any company\u2019s financial\nreport since 1987.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"625\" src=\"http:\/\/m6consultants.com\/blog\/wp-content\/uploads\/2020\/03\/cfs-1024x625.jpeg\" alt=\"\" class=\"wp-image-63\" srcset=\"https:\/\/m6consultants.com\/blog\/wp-content\/uploads\/2020\/03\/cfs-1024x625.jpeg 1024w, https:\/\/m6consultants.com\/blog\/wp-content\/uploads\/2020\/03\/cfs-300x183.jpeg 300w, https:\/\/m6consultants.com\/blog\/wp-content\/uploads\/2020\/03\/cfs-768x469.jpeg 768w, https:\/\/m6consultants.com\/blog\/wp-content\/uploads\/2020\/03\/cfs-380x232.jpeg 380w, https:\/\/m6consultants.com\/blog\/wp-content\/uploads\/2020\/03\/cfs-800x488.jpeg 800w, https:\/\/m6consultants.com\/blog\/wp-content\/uploads\/2020\/03\/cfs-1160x708.jpeg 1160w, https:\/\/m6consultants.com\/blog\/wp-content\/uploads\/2020\/03\/cfs.jpeg 2000w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>How cash flow statement works<\/p>\n\n\n\n<p>A cash flow statement can work in\nmajorly three ways :<\/p>\n\n\n\n<ol><li>Operating\nActivities<\/li><li>Investing\nActivities <\/li><li>Financing\nActivities<\/li><\/ol>\n\n\n\n<p><strong>Cash\nFlow Statement in Operating Activities<\/strong><\/p>\n\n\n\n<p>These activities are the backbone of any\ncompany because it involves production of goods and delivery of it also . They\nreflect the total effects in cash including all the transactions i.e, net\nincome. It mainly analyzes the company\u2019s cash flow b net income and losses.<\/p>\n\n\n\n<p><strong>Cash\nFlow Statement in Investing Activities<\/strong><\/p>\n\n\n\n<p>It involves the purchase of property,\nequipments and many more things which are required for running of an\norganization. There is also result of investment gains and losses. This section\nis where analysts looks to find changes in capital expenditures (capex).<\/p>\n\n\n\n<p>Although only increase or decrease in\ncapex doesn\u2019t tells whether a company is getting profit or not . But generally\nthose companies which have high capex appears to be growing.<\/p>\n\n\n\n<p><strong>Cash\nFlow Statement in Financing Activities<\/strong><\/p>\n\n\n\n<p>It can sound similar to the above one\nbut in this there is a complete analysis of how much money a company has paid\n.Which type of shares are there and how can they be utilized to maximum extent.\nWhen we calculate cash flow from financing and if it is a positive number it\nmeans the company is gaining profit else if it a negative number there is more\nmoney going out from the company then coming in . So there is a need to resolve\nthe situation.<\/p>\n\n\n\n<p>References:<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/www.investopedia.com\/terms\/c\/cashflowstatement.asp\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/en.wikipedia.org\/wiki\/Cash_flow_statement\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/www.accountingcoach.com\/cash-flow-statement\/explanation\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"As the statement itself suggests that it is a type of financial statement of a company which measures&hellip;\n","protected":false},"author":1,"featured_media":63,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[14],"tags":[19,26,25,12,13,5,9,24,4,10,8,15,6,7,11,16,18,20,17,23],"_links":{"self":[{"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/posts\/62"}],"collection":[{"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/comments?post=62"}],"version-history":[{"count":2,"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/posts\/62\/revisions"}],"predecessor-version":[{"id":117,"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/posts\/62\/revisions\/117"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/media\/63"}],"wp:attachment":[{"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/media?parent=62"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/categories?post=62"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/m6consultants.com\/blog\/wp-json\/wp\/v2\/tags?post=62"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}