Inleiding tot het kasstroomoverzicht

A cash flow statement is a financial report that shows how much cash a company generates and uses during a specific period.

It tracks the flow of actual cash in and out of the business, helping to assess the company's liquidity and cash management.

The cash flow statement has three sections, which are operating activities, investing activities, and financing activities.

Let us consider Prim Corporation, a furniture manufacturer.

Its operating activities include day-to-day business transactions that impact its net income, such as sales amounting to twenty thousand dollars and supplier payments of fifteen thousand dollars.

Its investing activities reflect cash used to purchase a new machine for fifty thousand dollars.

Its financing activities involve taking a loan from a bank for one hundred thousand dollars.

By analyzing the cash flow statement, investors can determine whether Prim Corporation generates sufficient cash from its core business, how it allocates funds for growth, and how it raises and repays capital.