Discussion Board 4 – Statement of Cash Flows

Discussion Board 4 – Statement of Cash Flows

Please describe what the Statement of Cash Flow is for and the 3 components of it. Describe in detail each of the 3 components. And finally, describe what the difference is between the direct and indirect method of constructing the Statement of Cash Flow.

Statement of cash flows shows how income and balance sheet influence the cash and cash equivalents. Cash flows are concerned with the inflow and outflow of money of the firm, and it always captures current operations and any changes in the balance sheet. Therefore, as an analysis tool, the cash flow statement is used to show the firm viability in ………….