Cash Flow Statement Tutorial: Straightforward but Comprehensive Cash Flow Statement Explanation

Cash Flow Statement Tutorial: Straightforward but Comprehensive Cash Flow Statement Explanation This tutorial into the Statement of Cash Flows includes: * Introduction to, and the benefits of, the Cash Flow Statement * Guides into Each Section of the Cash Flow Statement, inc. possible interpretations of results * Examples of a Direct Cash Flow Statement & an Indirect Cash Flow Statement So what is the cash flow statement? It is one of the four main financial statements produced by a business. Simply, it tells us about cash inflows and outflows of a business over a length of time. Further, it categorises cash flows into particular business activities. A standard cash flow statement will show a net change in cash over the period. It may only show this net change or it may show a cash starting balance, an ending balance and thus also the resulting net change. This net change in cash is also broken down into three main (and standard) categories. These are cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. Cash Flow from Financing Activities: From latter to first; cash flow from financing activities displays all cash inflows and outflows that have to do with how the business is financed. That is, how it raises cash from external parties to fund the business (inflows) and how it then returns cash to those who funded the business (outflows). Cash Flow from Investing Activities: In the second section, cash flow from investing activities, details of all cash inflows and outflows are outlined in respect to investments and sales of non-current assets. These are the long-term assets of the business that normally generate the income of the business. Cash Flow from Operating Activities: This section of the cash flow statement details the nuts and bolts of the business. That is, this section outlines cash inflows and outflows of the day-to-day operations of the business. For example, if the statement is for a bookstore, then the cash flow from operations would detail money coming in and out in the process of actually selling books. You could contrast this with selling shares to raise the cash to open a bookstore (cash flow from financing activities) and spending funds on buying a retail space to sell books (cash flow from investing activities). Enjoy this free accounting education video! --------------------- This video was brought to you by accofina. Other accofina Products & Services: Free Spreadsheets: 1) Ratio Analysis Calculators & Formulas http://www.accofina.com/spreadsheets/ratio-analysis-excel.html 2) Capital Budgeting http://www.accofina.com/spreadsheets/capital-budgeting-excel.html 3) Time Value of Money Calculators & Formulas http://www.accofina.com/spreadsheets/time-value-money-excel.html 4) 2-Year Monthly Cash Flow Forecast http://www.accofina.com/spreadsheets/cash-flow-forecast-excel.html 5) Retirement Planner http://www.accofina.com/spreadsheets/retirement-planner-excel.html Free Books: 1) Accounting: Foundation Inputs & Outputs http://accofina.com/free-books/accounting-foundations.html 2) 331 Great Quotes for Entrepreneurs http://accofina.com/free-books/331-great-quotes-entrepreneurs.html Books: 1) Ratio Analysis Fundamentals http://accofina.com/books/ratio-analysis-fundamentals.html 2) Balance Sheet Basics http://accofina.com/books/balance-sheet-basics.html 3) Income Statement Basics http://accofina.com/books/income-statement-basics.html 4) Cash Flow Statement Basics http://accofina.com/books/cash-flow-statement-basics.html 5) Financial Statement Basics http://accofina.com/books/financial-statement-basics.html 6) Corporate Finance Fundamentals http://accofina.com/books/corporate-finance-fundamentals.html a) Amazon Author Page: http://www.amazon.com/author/axeltracy b) Goodreads Author Page: https://www.goodreads.com/author/show/7450542.Axel_Tracy iOS Apps: 1) Ratio Analysis & Management Accounting Calculators http://accofina.com/apps/management-accounting-ratio-analysis-app.html 2) Ratio Analysis & Management Accounting Calculators 'Lite' http://accofina.com/apps/lite-management-accounting-ratio-analysis-app.html 3) Profitable Pricing http://accofina.com/apps/profitable-pricing-app.html a) Bidi Capital (accofina) Apps http://appstore.com/bidicapitalptyltd Online Learning: 1) Financial Statement Fundamentals http://accofina.com/online-education/financial-statement-fundamentals.html a) Udemy Instructor Page https://www.udemy.com/u/axeltracy/ b) YouTube Channel http://www.youtube.com/accofina Free Online Calculators: http://www.accofina.com Social Networking & Contact: 1) Facebook http://www.facebook.com/accofinaDotCom 2) Twitter http://www.twitter.com/accofina 3) LinkedIn https://www.linkedin.com/company/bidi-capital-pty-ltd 4) Google+ http://plus.google.com/+accofina

Comments

1. wow finally i've found the simplest and most understandable explanation of cash flow statement. Thanks!!!
2. Awesome video! Thank you for sharing your knowledge!
3. thanks!! your explanations are good. you should cover more areas of managerial finance.
4. Great tutorials - Guys! there are plenty of tutorials on YouTube but your tutorial tops the rest I was having a hard time with others Now have a better understanding from your tutorial
5. Here is the latest accofina video tutorial of mine. I hope you enjoy!
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   Cheers,
   Axel