Cash flows from operating operations, cash flows from investment activities, and cash flows from financing activities are the three main categories on a statement of cash flows.
The balance sheet and income statement are enhanced by this financial statement. Cash from three sources, including operating, investing, and financing activities, makes up the bulk of the CFS.
On a cash flow statement, which also includes cash from investing and financing activities, the cash flow from operating activities is shown as the first section. The indirect method and the direct method are both ways to show cash from operating activities on a cash flow statement.
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