A Cash Flow Statement (aka CFS, Statement of Cash Flows, or SCF) is a financial statement that provides a detailed overview of a business's cash movement during a specific period. The CFS provides insight into the business's operating, investing, and financing activities. This information helps the business understand their cash on hand, which informs their ability to operate in the short-term and long-term as well as their ability to fund business operations.
Floorzap provides an indirect CFS, which is divided into a few sections:
- Operating Activities - This section includes the business's cash flow from core operations, including income generated and expenses paid
- Investing Activities - This section includes the business's cash flow from selling or purchasing assets
- Financing Activities - This section includes the business's cash flow from equity and debt
The bottom of the CFS summarizes the beginning and ending cash and the resulting cash on hand at the end of the reporting period.
