Answer to Question #80206 in Finance for Like Heron

Question

What are the different sources of data for cash flow statement and cash flow projection?

Answer 1

Cash flow statement describes the inflows and outflows of cash in the business entity during a particular time period. There are three sources from where one can analyze the cash flows: operating activities (such as sales and purchase), financing (such as borrowing and loan repayments) and investing (dividends paid, retained earnings). This information can be extracted from the income statement and the balance sheet of the company. Sources of cash flow projection are the previous cash flow statement of the business entity.