How do you prepare a statement of cash flows from a balance sheet?
How do you prepare a statement of cash flows from a balance sheet? Building a Cash Flow StatementStep 1: Remember the Interconnectivity Between P&L and Balance Sheet. Step 2: The Cash Account Can Be Expressed as a Sum and Subtraction of All Other Accounts. Step 3: Break Down and Rearrange the Accounts. Step 4: Convert the Rearranged Balance Sheet Into a Cash Flow Statement. What is a company's cash flow statement? A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources. It also...