Major categories on the cash flow statements

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Reference no: EM131495577

Briefly explain the three major categories on the Cash Flow Statements?

1. Operating activities. (> is this correct?)

a. cash ?ows from operating activities, focuses on the sources and uses of cash tied directly to operations. Of course, the most important source of operating cash ?ow is operating income. When keeping track of Operating Activities, it makes the most sense to use it as the starting point for cash ?ows from operating activities. Adjustments are then made for changes in the balance sheet’s current asset and liability accounts that are directly tied to operations. Adjustments are then made for changes in those balance sheet current asset and liability accounts that are directly tied to operations. Operating cash ?ow = Operating income + Depreciation

b. Investing activities

c. Financing activities

Reference no: EM131495577

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