EPISODE 24: CASH FLOW STATEMENT The Cash Flow Statement explains the process - how the Income Statement (P/L) created the Balance Statement. It reorganizes the information from the Income Statement into: operations, investing, financing, and supporting. Operations addresses the sources of cash. Investing covers how acquiring assets where acquired to operate and grow the business. Financing is about shares and dividends; most small business owners are not taking or paying dividends during the company’s early stages so this is usually blank. However, pay close attention to this item because if you were attracted by the concept of an employee buyout, it starts here. Supporting covers non-financial transactions and taxes paid during the month.

Next Show/Chapter 9: Establishing BEP - Break Even Point