The Cash Flow Statement

The cash flow statement is one of the three financial statements released by companies, along with; the income statement, and balance sheet.

The cash flow statement shows the exact movement of cash in the company. This is in contrast to the income statement which uses accountants and their estimates to determine similar things.

This statement is split into three parts;

• Cash from operating activities – the cash the company makes from the running of its business.
• Cash from investing activities – the cash the company uses for investments.
• Cash from financing activities – the cash the company receives to run itself, and the cash it dishes out in dividends and share buybacks.

Click the links to learn about each item.

	June 30, 2019	June 30, 2018
Cash flows from operating activities Net Income
Depreciation and amortisation
Stock-based compensation
Deferred income taxes
Impairment of assets
Changes in operating assets and liabilities
Accounts receivable, net
Other receivables
Inventories, net
Other assets
Deferred revenues
Accounts payable
Accrued expenses
Other liabilities
Net cash provided by operating activities
Cash flows from investing activities
Purchases of marketable securities
Proceeds from sales of marketable securities
Purchases of property, plant, and equipment
Purchases of intangible assets
Acquisition of businesses, net of cash
Net cash used by investing activities
Cash flows from financing activities
Proceeds from x% senior notes, net of related fees
Repayment of x% senior notes
Dividends paid
Acquisition of treasury shares
Net cash used in financing activities
Effect of foreign exchange on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period