Statement of changes in financial position
The statement of changes in financial position (sometimes called a “cash flow statement”) shows a company’s net cash flow in a given period of time. Because it also indicates where the cash flowed from or to, it is often referred to as the “sources and uses of cash statement.”
The statement of changes in financial position looks at the three main business activities that provide or use cash:
- Operating (including sales, inventories, accounts receivable and accounts payable)
- Investing (including buying and selling assets/equipment)
- Financing (including selling common shares and paying off debt)
A dollar figure is noted on the statement for each of these three business activities. Their combined total is the company’s “net cash position” for the period of time being assessed.
More about the statement of changes in financial position
The statement of changes in financial position is not always well understood because it can be difficult to determine what constitutes a source of cash and what constitutes a use of cash. Below is an excerpt from a statement of changes in financial position illustrating the layout of the statement as well as some of the dynamics at play.

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