The Statement of Cash Flows report shows the inflow and outflow of cash and cash equivalents during the reporting period.

It helps to assess the real state of the company’s payments and its ability to pay for investments in the future. The report also contains full information about the company’s investments, raising and returning capital.

The report consists of three sections:

• Operating cash flows. They reflect the extent to which the company’s operations generate sufficient cash flows to repay loans, maintain the organization’s operational capabilities, pay dividends, and make new investments.
• Investment cash flows. They provide information about payments related to the acquisition or sale of long-term assets.
• Financial cash flows. They demonstrate how the company attracts capital for its activities, as well as what amounts were used to repay debts and distribute income among shareholders.