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CASH FLOW STATEMENT ANALYSIS:

Cash Flow Statement is a Statement which indicates Sources of Cash Inflows and Transactions of Cash OufLows of a Firm during an Accounting Period.

The Activities and Transactions which Generate Cash Inflows are Known as the Sources of Cash and the Activities which cause Cash Outflows are known as the uses of

Cash. It is Appropriately Termed "WHERE GOT WHERE GONE STATEMENT". It may be Empasised that the Information contained in the "CASH FLOW STATEMENT"

is objective and, more Credible and Reliable vis - a - vis the other Financial Statements. The Reason is that "CASH IS CASH" and the Amounts of Cash Flows are Not

affected by the Subjective Judgements and Estimates that are Normally made in Revenues, Expenses and other Accruals. The Cash Flow Statements is a Financial

Documents as it Leaves No Scope for any Manoeuvring on the Amounts of Cash Inflows and Cash Outflows.