The Cash Flow Statement shows the amount that went in and out of an account during the accounting period.
This is where the rubber meets the road, if you run out of cash, you are in trouble no matter how much profitable you are.
It is sectioned into three parts, depending on the nature of the flow.
Operational cash flow is from activities relating to the operational profit in the Income Statement.
Investment cash flow is from activities that relate to what the entity is investing in.
Financing cash flow is from activities that relate to what is investing in the entity.
Here's an over-simplified version of our cash flow statement for April 2015.
So at this rate, we're going to run out of cash in 22 months. :(
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