Items on the cash flow statement

Cash flow is usually categorised as follows.

Cash flow items

Operating cash flow

Cash flow from the business’s day to day operations. Usually presented as profits plus or minus differences between profit and operating cash flow. In the example we were working with previously, operating profit would be represented as 100 profit minus 25 increase in amounts owed by customers equals 75 operating cash flow.

Investing cash flow

Amounts related to investment in or sale of assets.

Financing cash flow

Proceeds of loans or other finance raising, repayment of loans or other finance, together with interest and other finance related costs.

Proceed with the finance for non-financial managers training course

The finance for non-financial managers training course extract finishes with a case study/ course quiz: linkages in accounts.