How do i create a cash flow statement

The simple analogy to creating a cash flow statement is analyzed below.

Explanation:

The cash flows statement is comprised of three sections: operating activities, investing activities, and financing activities.

The indirect method of preparing a statement of cash flows begins with the net profit from the income statement, which is then adjusted for non-cash items, such as depreciation.

Prepare-Gather Basic Documents and Data.

Step 2: Calculate Changes in the Balance Sheet.

Step 3: Put Each Change in B/S