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What is a Money Flow Statement? A cash flow statement is a monetary report that provides a detailed picture of a company's cash inflows in addition to outflows over the specific period. In contrast to the income statement, which concentrates on revenue and expenses, typically the cash flow affirmation specifically tracks the particular movement of cash. It's a critical tool for comprehending a company's fluid and financial well being. Why is the amount Flow Statement Significant? Gauging Liquidity: The main purpose of an earnin