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What is the Cash Flow Statement1:14 with Michael Watson
Introducing the Cash Flow Statement
[MUSIC] 0:00 The cash flow statement, sometimes called the statement of cash flows, 0:04 is the third big financial statement we're gonna cover in this course. 0:08 The cash flow statement shows the actual movement of cash in and 0:13 out of the business over a period of time. 0:17 It's not a snapshot statement like the balance sheet. 0:20 It is a statement covering a period of time like the P&L. 0:23 The cash flow statement is divided into three main sections, operating, 0:28 investing, and financing. 0:33 Sometimes these sections are named slightly differently. 0:35 For example, instead of cash flows from operations, 0:38 it might read cash flows from operating activities or simply operating activities. 0:42 Don't get hung up on that. 0:48 Just know that there will always be three sections communicating the same 0:49 basic information. 0:54 Also, I want to acknowledge that, in this stage of the course, 0:57 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 1:05 as this is an introductory level course. 1:09 Let's dive in. 1:13
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