Introduction to entrepreneurship/IENT103/Statements/Cash

“A cash flow statement is a financial statement that measures the cash generated or used by a company in a given period. It typically sets out a company's cash sources and uses for the period into three categories: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.” Investing Answers

The cash flow statement (sometimes called the 'statement of cash flows') reflects the actual amount of money the company receives from its operations. It reports on the cash coming in and going out during the time interval specified in its heading (for instance, the heading may state "For the Three Months Ended June 30, 2018" or "The Fiscal Year Ended December 31, 2017"). That time period is chosen by the company.

Required reading

Read the following texts:

1. Cash Flow Statement by Entrepreneur.
2. Analyze Cash Flow The Easy Way by Investopia.
3. Sample Cash Flow Statement by Nolo. An excellent worked example.

WEnote

Thinking about your own entrepreneurial idea, create a spreadsheet (like 3 above) and examine your "Cash at End of Month" over the year.

Do you foresee any months where your cash flow will go negative? What is your plan to correct this?

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