The cash flow statement, known formally as the Statement of Cash Flows, reports a company’s change in cash and cash equivalents from one balance sheet date to another. The cash flow statement classifies the amount of the change according to operating, investing, and financing activities. The cash flow statement has been required by the Financial Accounting Standards Board since 1988, when it issued its Statement No. 95. You can read about the statement of cash flows at www.FASB.org/st.

Prior to 1988, accountants prepared a funds flow statement. Generally, the funds flow statement reported on the change in working capital from one balance sheet date to another.

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