The statement of cash flows provides summary information about cash _____ and cash _____ during the year.
inflows, outflows
The statement of cash flows provides summary information about cash inflows and cash outflows during the year. In other words, it reports on the sources and uses of cash for a particular period, typically a fiscal year, and categorizes those activities into three sections: operating activities, investing activities, and financing activities. Operating activities refer to the primary business activities that generate cash, such as sales or the provision of services. Investing activities involve activities that involve cash transactions that affect non-current assets, for instance, purchasing or selling property, plant, and equipment (PP&E). Financing activities include activities that involve cash transactions that affect debt, equity, or both, such as issuing common stock or paying dividends. By analyzing these three sections, investors and analysts can evaluate a company’s ability to generate cash, how it invests in and finances its growth, and its overall financial performance.
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