Cash flow statement gives us the knowledge of inflow and outflow of cash within two or more period. We show net cash inflow from operation, from investment and from financing in it. It is made on basic formula <br /> <br />Opening balance of cash + Cash from operation + cash from investment + cash from financing = Closing balance of cash <br /> <br />Read more at http://www.svtuition.org/2011/09/how-to-solve-cash-flow-statement.html <br /> <br />Follow Accounting Education at Facebook http://www.facebook.com/accounting.education