There are two Method of preparing cash flow statement.
1. Direct Method
2. Indirect Method
There are four main Component
Cash flow from Operational Activities
Cash flow from investing Activities
Cash flow from Financial Activities
Cash & Cash Equivalent
1. Cash Flow from Operational Activities :-
Cash flow from operating activities indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers.
2. Cash flow from Investing Activities :-
Cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.
3. Cash flow from Financial Activities :-
Cash flow from financing activities is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.
4. Cash & Cash Equivalent :-
Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately.