Those three components of the CFS are listed below.
The operating activities on the CFS include any sources and uses of cash from running the business and selling its products or services.
Assets are listed on the balance sheet in order of liquidity.
Liabilities are listed in the order in which they will be paid.
Unlike the balance sheet, the income statement covers a range of time, which is a year for annual financial statements and a quarter for quarterly financial statements.Investors can also see how well a company's management is controlling expenses to determine whether a company's efforts in reducing the cost of sales might boost profits over time.The cash flow statement (CFS) measures how well a company generates cash to pay its debt obligations, fund its operating expenses, and fund investments.The cash flow statement complements the balance sheet and income statement.The CFS allows investors to understand how a company's operations are running, where its money is coming from, and how money is being spent.