Cash flow statements

What you'll learn

1. 1

   A cash flow statement tracks the money coming into and going out of a business over a period of time. Think of it like your personal bank account — you record every deposit and withdrawal to see if you're in the green or red.

2. 2

   What does a cash flow statement track?

3. 3

   Let's build a simple cash flow for a lemonade stand for one month.

4. 4

   Now you try — build the cash flow for a bakery. Drag the amounts into the correct sections.

5. 5

   A business starts with £200 cash. It has inflows of £500 and outflows of £300. What is the closing cash?

6. 6

   Complete the cash flow statement below — fill in the missing net cash flow.

7. 7

   If net cash flow is negative, what does that mean?