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The cash flow statement breaks out a company’s cash source and uses for the period into three – cash flows from operating activities, investing activities and from financing activities. Net cash flow is nothing but the difference between the cash inflows and outflows of the business.
Operating activities are shown by the operating cash flow of a company, where you can find out how much money is spent on new assets and buying other companies. It also shows the money received from interest income and from the sale of assets or firms within the company.
It shows cash coming into the firm from new borrowings and from the issue of new shares and the cash going out for repaying loans, paying interest, buying back shares and paying dividends to the shareholders.
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