The Cash Flow Statement is one of the most important financial statements to investors and is also considered a non-legal document. It can be used as a tool to identify problems with a company’s cash management and to help with the decision making process. The cash flow statement measures cash inflows and outflows by reporting the net change between the beginning balance of cash and cash equivalents, and the ending balance.The cash flow statement is divided into three sections: the operating activities section, the investing activities section, and the financing activities section.Operating activities section: The operating activities section reports the net change in cash from operating activities, which includes the cash inflows from sales and services, as well as cash outflows for expenses, payroll and income taxes, among others.Investing activities section: The investing activities section reports the net change in cash from investing activities, including purchases and sale of property, plant and equipment, as well as other long-term assets.Financing activities section: The financing activities section reports the net change in cash from financing activities, including proceeds from issuing stock and bonds, as well as proceeds from borrowing and payments to repay debt.The statement of cash flows is one of the three financial statements prepared by all publicly held companies in the United States, the other two being the balance sheet and the income statement. The cash flow statement is also prepared by private companies and non-profit organizations.The cash flow statement is reported as an attachment to the company's financial statements found in annual reports, quarterly reports, and 10-Qs. The format of the cash flow statement varies from one organization to another depending upon whether it is a private company or a public company.The cash flow statement for a private company is more detailed than that of a public company because it includes more information about its operating and investing activities.