- Where the money came (will come) from?
- Where it went (will go)?
- Operating-activities (sales of goods or services),
- Investing-activities (sale or purchase of an asset, for example), and
- Financing-activities (borrowings, or sale of common stock, for example).
Together, these sections show the overall (net) change in the firm's cash-flow for the period the statement is prepared.
Lenders and potential investors closely examine the cash flow resulting from the operating activities. This section represents after-tax net income plus depreciation and amortization and, therefore, the ability of the firm to service its debt and pay dividends.
Use cash flow statement in a sentence