Understanding how to calculate a net income statement of cash flows is an essential skill for businesses and financial professionals. It is a financial statement that shows how much cash a company has generated and used during a specific period, typically a quarter or a year.
The statement of cash flows is important because it provides valuable insights into a company’s financial health and performance. It can help investors, creditors, and other stakeholders assess a company’s ability to generate cash, meet its financial obligations, and make strategic investments.