Running head: STATEMENT OF CASH FLOWS1Statement of Cash FlowsUniversity of Maryland University CollegeSeptember 30, 2018
STATEMENT OF CASH FLOWS2Statement of Cash FlowsA Memo to JuanThe main purpose of the statement of cash flows is to provide information about cashinflows, which is receipts or sources of cash, and cash outflows, which is payments or uses ofcash, of a business for a period (Parks, p.4).The statement of cash flows is an integral financialstatement which ties other statements together to see a complete picture of a company’s financialhealth.The statement of cash flows classifies the cash receipts and cash payments of a companyby business activities, which are operating, investing, and financing. The sum of sections of eachactivity reports the result of the amount of cash in the cash account from the beginning of theperiod to the end of the period on the statement of cash flows.