Cash Flow
Home Contact

Operating Activities

By using the changes in the balances between current assets and current liabilities, the cash flow statement can show the companies net income and then translate it after it has accumulated into working cash.

It is also able to remove the depreciation and gains/losses on long-term assets so that the income statement’s show of income is turned into cash.

The following shows areas of assets and liabilities included in the statement of cash flow:

  • Accounts receivable
  • Accounts payable
  • Inventory
  • Supplies
  • Prepaid insurance
  • Miscellaneous current assets
  • Notes Payable
  • Wage payable
  • Payroll taxes payable
  • Interest payable
  • Income taxes payable
  • Unearned income
  • Miscellaneous current liabilities