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Simple Business

? Payment of d ividends .
? Ra ising and repaying debt.
? Ra ising equity and equity distributions to shareholders.
However, these items would appear in the cash flow s tatement, as they may
involve transfers of cash. Cash Flow Statement
The cash flow statement records cash transactions that occurred within the
This may be quite d ifferent to the profit-and-loss statement.
Capita l transactions, such as equipment purchases, are included in the cash
flow statement but not in the profit-and-loss statement.
In contrast, non-cash ite ms such as depreciation are included in the profit -
and-loss statement, but not in the cash flow statement.
The cash flow statement may appear in various forms .
One format g roups the items into three categories.
These are:
Cash flow fro m operations
General inco me and e xpenses from
the operation of the business.
Cash flow fro m investment activities Capita l transactions such as the
purchase and sale of assets,
development of new facilities etc.
Cash flow fro m fundraising activities New debt raised, plus new equity
raised, less debt repaid, less capital
distributions to shareholders, less
dividends paid.