Cash Flow Statement

What Is A Cash Flow Statement(CFS)?
Its records the amounts of cash and cash equivalents entering and leaving a company. The CFS allows investors to understand how a company's operations are running, where its money is coming from, and how it is being spent.

The cash flow statement organizes and reports the cash generated and used in the following categories:

1. Operating activities
   converts the items reported on the income statement from the accrual basis of accounting to cash.
2. Investing activities
   reports the purchase and sale of long-term investments and property, plant and equipment.
3. Financing activities
   reports the issuance and repurchase of the company's own bonds and stock and the payment of dividends.

Cash flow statement is being prepared using two methods as follow

1. Direct Method CFS
   A cost or expense that can directly traceable against each activity that define as direct method of Cash Flow Statement

Anderson Inc.
Cash Flow Statement for the year end 31st December 20xx

1. Indirect Method CFC
   A cost or expense that can NOT BE DIRECTLY traceable against each activity that define as direct method of Cash Flow Statement

Anderson Inc.
Cash Flow Statement for the year end 31st December 20xx

BOTH METHODS DIFFER FROM OPERATING ACTIVITY