Explain Cash Flow Statement.

A cash flow statement is a financial statement that provides a summary of the cash inflows and outflows of a business or organization over a specified period, typically a fiscal quarter or year. It tracks the movement of cash into and out of the company's operations, investments, and financing activities, providing insights into its liquidity, solvency, and financial health.

The cash flow statement is divided into three main sections:

1. Operating Activities: This section records cash flows related to the core operations of the business, including revenue from sales, payments to suppliers, salaries, taxes, and other operating expenses. It reflects the cash generated or consumed by the company's day-to-day business activities.

2. Investing Activities: This section captures cash flows related to investments in assets and securities, such as the purchase or sale of property, plant, equipment, and investments in stocks or bonds. It reflects the company's investment decisions and their impact on its cash position.

3. Financing Activities: This section records cash flows related to financing activities, such as the issuance or repayment of debt, issuance of equity shares, payment of dividends, and other transactions with creditors and investors. It reflects the company's capital structure and how it raises and uses funds to finance its operations and growth.

The cash flow statement helps stakeholders, including investors, creditors, and management, assess the company's ability to generate cash, meet its financial obligations, and support its ongoing operations and growth initiatives. It complements the income statement and balance sheet by providing a comprehensive view of the company's financial performance and liquidity position.