Explain a Cash Flow Statement.

A cash flow statement, also known as a statement of cash flows, reveals how much cash is made and spent during a specific period of time. One of the primary financial statements used by analysts when creating a three-statement model is this one. Operating activities, investment activities, and financing activities of a company are the three primary categories included in a cash flow statement and are arranged in that order.

The total change in cash for the period is calculated by adding the sum of the total cash provided from or used by each of the three activities to the opening cash balance. This results in the closing cash balance, which is the final number on the cash flow statement.