Which financial statement provides details on cash inflows and outflows?

The Statement of Cash Flow is the financial statement that specifically provides details on cash inflows and outflows during a particular period. This statement categorizes cash movements into three main activities: operating, investing, and financing activities.

Operating activities reflect the cash generated or consumed by core business operations, such as cash received from customers and cash paid to suppliers. Investing activities detail the cash used to purchase or sell assets, such as property, equipment, and other investments. Financing activities encompass cash transactions related to equity and debt, including issuing stock, paying dividends, or borrowing from the bank.

Understanding cash flow is crucial as it highlights the company’s ability to generate cash to fund operations, pay debts, and invest in growth opportunities. The unique focus on cash, rather than profits or losses, differentiates this statement from others, such as the income statement or balance sheet, which serve different purposes related to profitability and financial position, respectively.