Back to Basics – Do you read the statement of cash flows?
Abstract: The statement of cash flows is sandwiched between income statement and footnote disclosures in borrowers’ annual financial reports. Much like a middle child, it rarely garners the attention it deserves. But savvy lenders know that it contains valuable information about the sources and uses of their borrowers’ cash. This article discusses the four sections of the statement and how to glean important information from them.