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Cash Flow Statement Example Template How to Prepare Explanation
The starting cash balance is necessary when leveraging the indirect method of calculating cash flow from operating activities. What makes a cash flow statement different from your balance sheet is that a balance sheet shows the assets and liabilities your business owns (assets) and owes (liabilities). The cash flow statement simply shows the inflows and outflows of cash from your business over a specific period of time, usually a month. Cash flows from financing consists of cash transactions that affect...
