Creating and Understanding The Cash Flow Statement

Example of Statement of Cash Flows from Iowa State University

Creating and Understanding The Cash Flow Statement

April 18, 2022 - Jonathan LaPorte<laportej@msu.edu>, Michigan State University Extension

The cash flow statement provides information on how changes from the balance sheet and cash transactions (income or expense) affect the farm business’ overall cash position. It analyzes how cash was used to meet financing, investing, and operating activities during a specific period, answering the question:

"Where did cash come from and where did it go?"

The following videos outline how a cash flow statement is created, what information is provided, and how statements are used to better understand your farm business:

Statement of Cash Flows: What Information Does It Provide - 4:16 minutes

Statement of Cash Flows: Creating and Using The Statement - 3:57 minutes

For more information on cash flow statements and fillable forms available for your farm, visit: Beginning Farmers DEMaND - Farm Financial Statements Page

Authors

Jonathan LaPorte
laportej@msu.edu

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MSU Extension Farm Management