Cash Flow statement has three components:
Operating Cash Flow:It has another name - Working Capital. This is the cash generated from product / service sales and from internal operations, so it can be controlled.
Investing Cash Flow:This cash flow is generated internally from non-operating activities like investments in plant and equipment or other fixed assets and non-recurring loses or gains.
Financing Cash Flow:This cash flow is the cash to and from external sources, such as lenders, investors and shareholders. A new loan, the repayment of a loan, the issuance of stock and the payment of dividend are some of the activities that would be included in this section of the cash flow statement.
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