Nov 21st, 2024 at 09:16 AM

Structure of the Cash Flow Statement

The cash flow statement is divided into three sections— 1. cash flow from operating activities: Examples of the direct method of cash flows from operating activities include: a) Salaries paid out to employees b) Cash paid to vendors and suppliers c) Cash collected from customers d) Interest income and dividends received e) Income tax paid and interest paid 2. cash flow from investing activities: The cash flow from investing section shows the cash used to purchase fixed and long-term assets, such as plant, property, and equipment (PPE), as well as any proceeds from the sale of these assets. 3. and cash flow from financing activities: The cash flow from financing section shows the source of a company's financing and capital as well as its servicing and payments on the loans.