What is the primary purpose of the statement of cash flows?

The primary purpose of statement of cash flows is to reflect the true picture of cash (inflow and out flow) of an entity.
By inflow and out flow it means Receipts and Payments.
It mainly separates the cash (Receivables, Payables, Interest amounts, Purchase and disposal of Fixed assets and other investments) items from non-cash items (Depreciation)

The primary purpose of cash flows is to control inflow and outflow of an entity then we can monitor it's progress.
It is used to make some decisions to make better.

ross receipts and gross payments for a specified period of time.The gross receipts and gross payments will be reported in the cash flow statement according to one of the following classifications: operating activities, investing activities, and financing activities. The net change from these three classifications should equal the change in a company's cash and cash equivalents during the reporting period. For instance, the cash flow statement for the calendar year 2013 will report the causes of the change in a company's cash and cash equivalents between its balance sheets of December31,2012 and December31,2013.In addition to the cash amounts being reported as operating, investing, and financing activities, the cash flow statement must disclose other information, including the amount of interest paid, the amount of income taxes paid, and any significant investing and financing activities which did not require the use of cash.The statement of cash flows is to be distributed along with a company's income statement and balance sheet. 

provide information about a firm's cash inflows (receipts) and outflows (payments

it shows the total cash inflow and cash outflow of the organisation.by this we can control our costs by observing earlier year cashflow statement..majorly this statement into cash from operating,investment,financing activities..By this we can know where we incur a huge cash.Finally concluded that it shows the internal performance of the org.

The primary purpose of a cash flow is to provide information about the cash receipts and cash payments of an entity during a period.

 

Joshi Mathew

Group Credit Controller

CIA #1036906

 

The purpose of the cash flow statement or statement of cash flows is to provide information about a company’s gross receipts and gross payments for a specified period of time.
The gross receipts and gross payments will be reported in the cash flow statement according to one of the following classifications: operating activities, investing activities, and financing activities.
The net change from these three classifications should equal the change in a company’s cash and cash equivalents during the reporting period.
For instance, the cash flow statement for the calendar year2013 will report the causes of the change in a company’s cash and cash equivalents between its balance sheets of December31,2012 and December31,2013.

Cash Flow Statement has three breakups:

1) Cash from operating activities

2) Cash from investing activities

3) Cash from financing activities

By looking at it, one can easily tell how much cash was generated from or used in a particular type of activity.

Note that primary function of a company is its operatins ... If a company is generating positive cash flows from operations then it is a high growth company and is interalia probably a good invetment option.

To identift significant sources of cash in-flows and out-flows during the period.

 

The prupose of cash flow statement is to assess the capaicity of a company to generate net cash inp-flows.

 

The purpose of the cash flow statement or statement of cash flows is to provide information about a company's gross receipts and gross payments for a specified period of time.

The primary purpose of Cash Flow Statement is to provide information about a company's cash inflows (receipts) and outflows (payments).
The gross receipts and gross payments will be reported in the cash flow statement according to one of the following classifications: operating activities, investing activities, and financing activities.
The net change from these three classifications should equal the change in a company’s cash and cash equivalents during the reporting period.