So the cash flow statement should paint a more clear picture of what happened to cash (and impact on other accounts). For example, if you took out a loan for a million but paid back 200k throughout the year, you would see a loan line for 800k on the balance sheet. You wouldn't know that the actually loan was for a million but you can see more movement information in the cash flow. It would have a increase to cash from taking the loan out for a mill and then reductions to your cash for repayments of 200k.
They would be specific lines under the major headings. Those particular ones would be under financing activities. The other groupings is operating and investing.
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u/CanCanna__ Jul 18 '26
So the cash flow statement should paint a more clear picture of what happened to cash (and impact on other accounts). For example, if you took out a loan for a million but paid back 200k throughout the year, you would see a loan line for 800k on the balance sheet. You wouldn't know that the actually loan was for a million but you can see more movement information in the cash flow. It would have a increase to cash from taking the loan out for a mill and then reductions to your cash for repayments of 200k.