ACC 421 Week 5 Statement of Cash Flows

Apr 19th, 2015
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ACC 421 Week 5 Statement of Cash Flows

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Statement of Cash FlowsDateNameAcc 421Instructor NameThe statement of cash flows coordinates with the balance sheet and income statement. It is mandatory that every company's financial reports include statement of cash flow. The statement of cash flow provides investors information on how the company's operations are running, where the money is coming from, and how the money is spent. The difference between the cash flow statement and the balance sheet and income statement is that the cash flow statement does not include the amount of future incoming and outgoing cash. This means that the cash would be different than the net income.Cash flow is looks at business core operations, investments, and financing to see what cash enters and leaves a company. The operations section on a cash flow statement shows how much cash is made from the company's products or services. "Changes in cash, accounts receivable, depreciation, inventory, and accounts payable are effected in the operations area of the statement of cash flow "(Investopedia, 2011).Investment cash changes are generally caused from the change in equipment, assets, or investments. For example, purchasing

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