Statement of Cash Flows

Question 1

What is on the left vs right vs top-down?

Answer 1

left: Disbursements (Auszahlungen)
right: deposits (Einzahlungen)
top-down: turnover processes - investment processes - financing processes

Question 2

Definition

1.
2.
3.
4.

Answer 2

• Provides a measure of the firms profit over a given time period
• does NOT indicate the amount of cash the firm has generated, bc there are non-cash entries on the income statement + certain uses of cash such as purchase of a building are not reported on the income statement
• utilizes information from income statement and balance sheet to determine how much cash the firm has generated and how it has been allocated within a certain time period
• probably most important information here

Question 3

Is divided into three sections…

Answer 3

1. operating activities
2. investment activities
3. financing activitites