Statement of cash flows: calculations and why profit is not cash

What this note covers

1. What the statement of cash flows shows that the income statement cannot
2. Why profit and cash are not the same number
3. Calculating cash receipts from customers
4. Calculating cash payments and the operating activities section
5. Investing and financing activities
6. Interpreting the completed statement
7. How the statement of cash flows is examined and what separates a top response

7 sections · 8 key terms & formulas · 6 common mistakes