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The statement of cash flows are from the balance sheet. What you look at is all items that effect cash in the company. Examples are accumulated depreciation from balance sheet is added back into statement of cash flows. all expenses, income tax, pre paids, ect, also, any gains or losses on sale of investments are included back in. example, a gain on sale of investments are deducted from cash flow. The cash flow statement involves all those items effected by the use of cash for the company.This is to show cash from operating, investment and finacing transactions by the company. accounts receivables if lower than previous month or period is added back into cash flow, acct rec increases are deducted from it. acct payables are added back in if the acct payable increases assuming that the payables have not been paid yet this effects cash. There are many more items that go into it, remember all items that have an effect on cash are in the statement of cash flows. I hope i helped a little. tom simakis
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