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13.8: Introduction to Key Concepts in Cash Flows

  • Page ID
    45978
  • What you’ll learn to do: Discuss key financial principles needed to produce and analyze a statement of cashflows

    The cash flow statement goes through where are cash comes from in our company. We need to look a little deeper than just cash-in and cash-out to find out if we are managing our cash in the best way possible! We will go through two methods, the direct and indirect method. Most companies use the direct method, but it is good to be familiar with both.

    Take a look at this video for an introduction to the cash flow statement and analysis of cash:

    Thumbnail for the embedded element "Module 11, Video 1 - Statement of Cash Flows"

    A YouTube element has been excluded from this version of the text. You can view it online here: http://pb.libretexts.org/afm-2/?p=522

    This statement allows us to better see where our money is coming from, how quickly we are collecting cash and where our cash is being spent!

    CC licensed content, Original
    • Introduction to Key Concepts in Cash Flows. Authored by: Freedom Learning Group. Provided by: Lumen Learning. License: CC BY: Attribution
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