The statement of cash flows is a statement that discloses analytical information about the different sources of a fund and the application of it in an accounting cycle. These are transactions that change both the amount of current assets and current liabilities (in the form of decrease or increase in working capital) or fixed assets, long-term loans including the property fund.
It gives a clear idea of the movement of funds between the opening and closing dates of the balance sheet. It is also called the Statement of Sources and Applications of Funds, Statement of Funds Movement; Where-Where Gone Statement: Flow in and out of the Statement of the Fund, etc. No doubt, the Statement of Cash Flow is an important indicator of financial analysis and control. It is valuable and also helps determine how funds are funded. The financial analyst can evaluate the future flows of a company based on past data.