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Introducing the Cash Flow Statement
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[MUSIC]
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The cash flow statement, sometimes
called the statement of cash flows,
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is the third big financial statement
we're gonna cover in this course.
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The cash flow statement shows
the actual movement of cash in and
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out of the business over a period of time.
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It's not a snapshot statement
like the balance sheet.
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It is a statement covering
a period of time like the P&L.
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The cash flow statement is divided
into three main sections, operating,
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investing, and financing.
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Sometimes these sections
are named slightly differently.
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For example,
instead of cash flows from operations,
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it might read cash flows from operating
activities or simply operating activities.
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Don't get hung up on that.
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Just know that there will always be
three sections communicating the same
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basic information.
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Also, I want to acknowledge that,
in this stage of the course,
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we will start to touch on some more
advanced finance and accounting topics.
1:00
I am not gonna go into deep detail
when we encounter some of these topics
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as this is an introductory level course.
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Let's dive in.
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