How can I answer this post with a good comment: The statement of cash flows is basically the report that shows how much cash a company is bringing in and spending. It tells us if the company has enough money on hand to pay its bills and stay running. The whole point is to break down the cash coming in and going out during a set time so investors and other people can see how well the company handles its money (Koller, Goedhart, & Wessels, 2015). The statement has three main parts: 1. Operating activities show the cash that flows in or out from daily business operations. This includes the money received from customers and the money paid to suppliers. For example, a retail store would list cash coming in from sales and cash going out to buy more inventory. 2. The Investing Activities section is about the cash that comes in and out when we buy or sell big stuff we plan to keep for a long time. For instance, when a store invests $50,000 in a new espresso machine, that money exits our budget and appears as an outflow in the investing activities section. 3. Financing Activities covers the money that comes in or goes out when the company borrows cash, pays back loans, or deals with stocks. If the company sells new shares and pockets $100,000, that's counted as cash coming in. The statement of cash flows is the go-to tool for figuring out how healthy a company is and how well it's actually running (Brigham & Ehrhardt, 2016)