What is a Cash Flow Statement?

By Leanna Kelly It’s vital for companies and investors to understand cash flow: the money coming into a company and leaving it. To understand this metric at a glance, companies will prepare a cash flow statement. This financial document is a summary of the entity’s cash flow over a specific accounting period. It shows cash and cash equivalents as they enter and leave a business, painting a picture of financial health.
A cash flow statement is one of the big three financial documents companies rely on to understand financial health, alongside the balance sheet and income statement. Alone, the cash flow statement is …read more