cash flow statement

How to Prepare a Cash Flow Statement?

To prepare a cash flow statement, follow these steps:

1. Gather Financial Data: Collect data from various sources, including income statements, balance sheets, and other financial records.

2. Categorize Transactions: Classify each cash transaction under operating, investing, or financing activities.

3. Calculate Net Cash Flow: Subtract cash outflows from cash inflows for each category to determine the net cash flow.

4. Compile the Statement: Summarize the net cash flows from each category to create the cash flow statement.

Frequently asked queries:

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