Decoding The Cash Flow Statement: Investing and Financing Activities
The Cash Flow statement is one of the three key financial statements that tell us about a company’s financial health, the other two being the Balance Sheet and Income/ Profit & Loss Statement. The Cash Flow statement outlines a company’s cash inflow and outflow, shedding light on where the money comes from and where it goes. This statement is key in evaluating a company’s financial health, showing if it can cover its expenses, debts, and investments. There are three major components of a Cash Flow Statement: Cash from Operating Activity (CFO), Cash from Investing Activity (CFI), Cash from Financing Activity (CFF)
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