Cash Flow statements or simply the statement of cash flows is a summary of the report of cash and cash equivalents that move in and out of a financial corporation. For any company, it is important to maintain a good cash position, which not only helps in funding its daily/periodic operating expenses but also be able to pay any outstanding payments or debt obligations. Financial reports or a financial statement earlier consisted of only a balance sheet and an income statement. But, since 1987, a cash flow statement has also become a part of it.
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