Cash flow statement

Part of a company's financial statements. This statement shows the movement and availability of cash through and to the business over a given period, usually one year. However it can also be made up monthly and cumulatively. The major categories are 1. Cash flow from operations. 2. Returns on investments and servicing of finance (e.g. interest received and paid, dividends received and paid). 3. Taxation. 4. Capital expenditure. 5. Acquisitions and disposals. 6. Equity dividends paid. 7. Management of liquid resources. 8. Financing. The availability of cash in a company that is necessary to meet payments to suppliers, staff and other creditors is essential for any business to survive, and so the reliable forecasting and reporting of cash movement and availability is crucial. The cash flow statement provides a third perspective alongside the Profit and Loss account and Balance Sheet.