The cash flow statement summaries the cash received and paid out
during a period of time which, as in the case of an income statement, is
usually a month or a year. As many of the items in an income statement
are paid for in cash, the cash flow statement could just repeat the same
information. To simplify the detail, the cash flow statement starts with
the operating income that has been earned and then adjusts for non-cash
items and movements in working capital. As a ..read more
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