Business of Radiology 101
Cash Flow Statement
The cash flow statement documents shifts of cash into or out of a business during a specified time period. While the income statement includes all revenues, whether or not cash is collected for those sales in the accounting period, a cash flow statement details the current cash balance of a business. Cash Flow Statements aid the assessment of the financial health and liquidity of a business. Availability of cash is important in order for a business to grow and expand, purchase inventories or new products (i.e. CT scanner or MRI scanner), or repay debt. While the cash flow statement itself will not be specifically studied within this current activity, the concept of cash flow is used and should be understood. There are three main sources of cash flow: operating activities, financing activities, and investing activities.