Sample Cash Flow Statement

A Statement of cash flows, is a report that covers the cash inflows and outflows that are made in a given period.

It is one of the basic processes in accounting and is based on reviewing the movement of cash in three categories:

• Operational activities
• Investment activities and
• Financial activities

You can specify that the objective of the Statement of cash flows, It is the way in which the circumstance in which a company is found can be verified, to produce capital in cash and all equivalents such as credits and the date on which the movements are made.

In order to detach the cash flow statement Two main methods have been developed:

1. Direct e
2. Indirect

The first clarifies which are the main inputs and outputs, or the most obvious ones in the company.

The second is based on alternate processes that at the end give the total result of the company's effective capital.

The variations between expenses and income is the final result in the statement of cash flows, and it is in this type of process that it can be established a measure that will be taken into account by the government and is used as one more requirement by the Ministry of Finance or the equivalent body in other countries.

And it is usually taken as a document that forms trust for a secured loan.

Example of a statement of cash flows:

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