Balance Sheet ↔ Cash Flow Statement

Definition: The cash flow statement explains the change in the Cash and Cash Equivalents line on the balance sheet from one period to the next. Non-cash balanc…

Equation

ΔCash on BS = Net Cash from Operating + Investing + Financing

The cash flow statement explains the change in the Cash and Cash Equivalents line on the balance sheet from one period to the next. Non-cash balance sheet changes appear as adjustments in the indirect method.

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