BNET Business Dictionary
Business Definition for: Cash Flow Statement
- a record of a company's cash inflows and cash outflows over a specific period of time, typically a year.
Example: It reports funds on hand at the beginning of the period, funds received, funds spent, and funds remaining at the end of the period. Cash flows are divided into three categories: cash from operations; cash-investment activities; and cash-financing activities. Companies with holdings in foreign currencies use a fourth classification: effects of changes in currency rates on cash.
A standard direct cash flow statement looks like this:
CRD Inc.
Statement of cash flows
For year ended December 31, 20__CASH FLOWS FROM OPERATIONS$Operating Profit82,000Adjustments to net earningsDepreciation17,000Accounts receivable(20,000)Accounts payable12,000Inventory(8,000)Other adjustments to earnings4,000Net cash flow from operations87,000 CASH FLOWS FROM INVESTMENT ACTIVITIESPurchases of marketable securities(58,000)Receipts from sales of marketable securities45,000Loans made to borrowers(16,000)Collections on loans11,000Purchases of plant and land and property assets(150,000)Receipts from sales of plant and land and property assets47,000Net cash flow from investment activities(-121,000) CASH FLOWS FROM FINANCING ACTIVITIESProceeds from short-term borrowings51,000Payments to settle short-term debts(61,000)Proceeds from issuing bonds payable100,000Proceeds from issuing capital stock80,000Dividends paid(64,000)Net cash flow from financing activities106,000Net change in cash during period72,000Cash and cash equivalents, beginning of year27,000Cash and cash equivalents, end of year99,000
Additional Resources
- How To Analyze A Company's Cash Flow Statement
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- White papers 2009-05-20
- The Vital Cash Flow Statement
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- White papers 2008-09-12
- Help With Understanding Cash Flow Statement
- A cash flow statement is a financial statement that shows the income and expenditures of a company for a specific period of time. Companies regularly prepare these statements on a quarterly basis although there are some that put out an annual report for their stockholders. As a holder of common...
- White papers 2009-01-01
- How To Monitor Your Cash Flows With A Cash Flow Statement
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- White papers 2009-01-01
- What Is The Cash Flow Statement
- Like the income statement, the cash flow statement also reflects changes over a period of time, rather than being a snapshot at a fixed point in time as in the balance sheet. This statement reflects all the movements of cash into the company cash inflow and out of the company...
- White papers 2009-01-01
- How To Read A Cash Flow Statement
- Financial statements provide the main source of information for estimating a firm's future cash flows and for taking advantage of a firm's strengths while correcting its weaknesses. Cash flow statement is a financial statement that integrates the information on the balance sheet and income statement and assists stakeholders to estimate...
- White papers 2009-03-30
- 12 Month Cash Flow Statement
- This is a template for 12 Month Cash Flow Statement.
- Tools & templates 2001-02-14
- Cash Flow Statement
- This is a template for cash flow statement.
- Tools & templates 2005-08-01
- Avoiding Cash-Flow Problems
- Cash flow is the life blood of any business, and a core indicator of an enterprise's financial health and viability. While not a failsafe way to appraise performance, cash flow is as good a barometer as any to quickly judge the financial performance of an entire company, an operating unit,...
- Articles 2007-11-14
- Cash Flow Management
- If there is anything more important to the successful financial management of a business than the thorough, thoughtful preparation of Pro Forma Income Statements, it is the preparation of the Cash Flow Statement, sometimes called the Cash Flow Budget. The Cash Flow Statement identifies when cash is expected to be...
- White papers 2003-01-01
- Learn to Look at the Cash Flow
- If a company reports earnings of one billion dollars, does this mean they have put this amount of cash in the bank? Not necessarily. The article maintains that financial statements are based on accrual accounting, which, in an effort to best reflect the financial health of a company, takes into...
- White papers 2003-01-01
- The Essentials of Cash Flow
- If a company reports earnings of $1 billion, does this mean it has this amount of cash in the bank? Not necessarily. Financial statements are based on accrual accounting, which takes into account non-cash items. It does this in an effort to best reflect the financial health of a company....
- White papers 2005-07-15
- Financial Statements And Cash Flow
- The financial statement analysis spells out the financial health of an organization at a given point of time. It is a measure of the financial responsiveness of the organization with respect to its shareholders. The income statement, balance sheet and cash statement forms part of the financial statement. The income...
- Presentations 2003-01-01
- SEC Acts to Curb Cash Flow Shenanigans
- An operating cash flow statement has long been considered a reliable barometer of a firm's financial health and less susceptible to creative accounting than its cousins the income statement and the balance sheet. Turns out, that belief is sometimes wron An operating cash flow statement has long been considered...
- Research articles 2005-06-01
- What Is My Projected Cash Flow?
- This tool determines your projected cash flow. Businesses generate a sources and uses of cash statement to evaluate their income and expenses and to check profitability. They also create a proforma which is a projection of future cash flows based on assumptions about growth/decline of income and expenses. Similarly, a...
- Tools & templates 2008-01-01
- The Importance Of Cash Flow Statements
- Many business owners disregard the importance of cash flow statements because they unwittingly believe that their current financial standing can be construed from other financial reports and projections. Unfortunately, however, a cash flow statement is necessary to adequately assess the incoming and outgoing flow of cash and other resources in...
- White papers 2006-08-31
- Discounted Cash Flow Valuation
- Cash Flow Statement CFS is the financial document detailing the exchange of cash between a business and the outside world. It contains details about the cash coming in the organization through operations and financing. CFS also elaborates on the cash going out of the organization through the investing activity. The...
- White papers 2003-01-01
- What Is My Current Cash Flow?
- Businesses generate a sources and uses of cash statement to evaluate their income and expenses and to check profitability. Similarly, a cash flow statement can help you evaluate your personal income and expenses and see if you are running "In the red or the black" each month.
- Tools & templates 2008-01-01
- pSivida Quarterly Cash Flow - March 31, 2008 Commentary and Highlights
- - Reincorporation Plan Announced - Medidur Collaboration Agreement Amended - BrachySil Pancreatic Cancer Phase IIa Results - Pfizer R&D Quarterly Payments Commence BOSTON, MA. & PERTH, Australia -- pSivida Limited (NASDAQ: PSDV)(ASX: PSD)(FSE: PSI) announced the filing of its Quarterly Cash Flow Statement for the quarter...
- Research articles 2008-04-30
- Accounts Payable and Cash Flow
- "This article is all about the account payable and cash flow statement which is the part of financial statements. Along with managing accounts receivable by improving credit and collection techniques, sound cash flow management demands that keep a sharp eye on payables and expenses. Each...
- White papers 2003-01-01
