Cash Flow Statement for a Financial Enterprise

This text provides an example of a cash flow statement for a financial enterprise. The statement shows how cash flows from operating activities, investing activities, and financing activities are used to generate cash and cash equivalents.

Questions

• What are the three main categories of cash flows?
• What are some of the items that are included in cash flows from operating activities?
• What are some of the items that are included in cash flows from investing activities?
• What are some of the items that are included in cash flows from financing activities?

Answers

• The three main categories of cash flows are operating activities, investing activities, and financing activities.
• Some of the items that are included in cash flows from operating activities are interest and commission receipts, interest payments, recoveries on loans previously written off, and cash payments to employees and suppliers.
• Some of the items that are included in cash flows from investing activities are purchases of fixed assets, sales of fixed assets, and investments in other businesses.
• Some of the items that are included in cash flows from financing activities are proceeds from issuing debt, repayments of debt, and dividends paid.