A company's statement of cash flows shows the amount of cash that came in and the amount that was paid out during a given period. The statement is broken down into several common categories that affect cash flow, including operating, investing and financing activities.
The operating cash flow section reveals the cash inflows and outflows from primary business activities. The investing activities section reveals the cash impact of buying and selling assets. The financing activities section reveals cash changes resulting from such activities as bond purchases and dividend distributions. Generally, a company wants a positive cash flow, so that it has enough money to pay bills.