Section 1:
Cash Flow Statement
*Refer to excel sheet for all the calculations
**We have started Cash Flow with operating income as even with net income we had to add back items to reach at operating income only.
Importance of Cash Flow Statement
Unlike other financial statements, Cash Flow Statement details the position of cash in the company. While both the income statement and Balance Sheet are made on accrual basis, Cash Flow is made on cash basis of accounting. In this way, Cash Flow Statement provides a detailed and an in-depth overview of cash inflows and outflows from the company. Below discussed is some ...