Accounting Ratios & Cash Flow Statement

A Cash Flow Statement tracks cash inflows and outflows across three main activities:

1. Operating Activities: Core business operations (e.g., cash sales, payments to suppliers).
2. Investing Activities: Purchase and sale of long-term assets (e.g., buying machinery, selling land).
3. Financing Activities: Changes in equity capital and borrowings (e.g., issuing shares, paying loans).

Key Purpose: Measures liquidity and financial health.