Different perspectives on the cash flow statement

In a highly competitive environment in which today's companies operate, the precise analysis of cash flow statement is essential for the survival of a company. Statement of cash flows provides investors and other stakeholders with the information about cash inflows and outflows and consequent changes in cash and cash equivalents. For this purpose, cash flow statement classifies cash flows into three key activities -operating, investment and financing. In this paper, attention will be focused on identifying the nature and use of the cash flow statement for the projects of either a company or an individual project, having in mind both the report as a part of companies‘ annual accounts and the projected cash flow statement. Investors closely watch cash flow from operating activities because it is most closely related to income statement and earnings of the company. Statement of cash flows can be the answer to how the company manages its growth, which is of particular importance for projecting future financial performance.