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How to read a cash flow statement

SystemSystem Posts: 412 admin
imageHow to read a cash flow statement

A Cash Flow statement shows the movement of money through a business. It’s a cornerstone financial report, and shows you the sources and uses of a business’ cash.
The cash flow statement tracks mon...

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edited April 6, 2020 in Help Center Discussion

Comments

  • Steve_IsaacsSteve_Isaacs Member Posts: 3

    Great added tool to have

    Thanks

  • yourtechangelsyourtechangels Member Posts: 4

    I understand the 3 sections described above, I'm confused where the numbers from the Gross Cash Inflow and Gross Cash Outflow are coming from.

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey @yourtechangels ! Gross cash inflow is the total amount of money going into a business before taxes/deductions. It can include sales, investments, financing, etc. Gross cash outflow is the opposite. It is the total amount of money leaving the business before taxes/deductions. This can include purchases, credit card payments, etc.

    edited October 26, 2020
  • ieremiasieremias Member Posts: 5

    This article was very insightful.
    Does Wave apps use the direct or indirect method to determine cash flow?

    edited April 14, 2021
  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey @ieremias !

    Happy to hear that. Wave's Cash Flow report uses the direct method! :smile:

    edited April 14, 2021
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