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Equation in Statement of Cash Flow

Equation in Statement of Cash Flow

Equation in Statement of Cash Flow  ( sometime called cash flow statement) is reported summary about cash position for company such beginning cash, cash movement and ending cash.

Equation in statement of cash flow :

Ending cash = beginning cash + cash from OA + cash from FA + cash from IA 

Cash movement = cash from OA + cash from FA + cash from IA

OA= cash flow from operating activity

FA= cash flow from financing activity

IA= cash flow from investing activity

 

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