What are the major components of Cash flow statement?

Question

What are the major components of Cash flow statement?

Answer 1

There are 3 sections in a Statement of Cash Flows:

1. Cash flows from operating activities = cash flows from transactions that affect net income.

2. Cash flows from investing activities = cash flows from transactions that affect the investments in noncurrent assets, such as sale and purchase of fixed assets such as equipment and buildings.

3. Cash flows from financing activities = cash flows from transactions that affect the debt and equity of the business, such as issuing or retiring equity and debt securities.