Chapter 4. The Cash Flow Statement
Where the company gets cash,and where that cash goes
Cash Flow Statement
• The Cash Flow Statement tracks the movement of cash through the business over a period of time.
• A company’s Cash Flow Statement is just like a check register…recording all the company’s transactions that use cash (checks) or supply cash (deposits).
• The Cash Flow Statement shows:
cash on hand at the start of a periodpluscash received in the periodminuscash spent in the periodequalscash on hand at the end of the period.
Cash Transactions
• So-called cash transactions affect cash flow. For example:
Paying salaries lowers cash.Paying ...
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