Baird Interview Question

Could you explain the Cash Flow Statement?

Interview Answer

Anonymous

Aug 3, 2014

A cash flow statement typically breaks out a company's cash sources and uses for the period into three categories: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities. Cash Flows from Operations = Net income + Noncash Expenses + Changes in Working Capital Cash flow from investing activities primarily reflect the company's purchases or sales of capital assets (that is, assets with a useful life of more than one year that appear on the balance sheet).