Statement of Cash Flows

The Statement of Cash Flows is a hybrid of Income Statement and Balance Sheet. People find this document to be the easiest to read. Most of us run our own lives base on this principal. The document starts out with the cash your organization has in bank (cash) accounts beginning of the year and then adds all income we received for the period. Restricted and unrestricted cash (I will explain the differences later).

Next on the list are all expenses the organization occurred during the period. This is followed by all liabilities, meaning outstanding bills and current loans or liabilities.

At the end of the calculation the reader of the Statement of Cash Flows knows how much cash is available for the operations of the organization at this particular time.


Statement of Cash Flows

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