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CFA Level 1
Financial Reporting and Analysis

Net Cash Flow from Operating Activities Calculation

Easy Financial Statements Cash Flow Statement

The cash flow statement is separated into three sections: operating activities, investing activities, and financing activities. Each section reflects various aspects of a company's cash flows during an accounting period. It is crucial for investors to understand how these activities affect a company's liquidity and financial health.

Consider a company, XYZ Corp, which reported the following cash flows for the most recent fiscal year:

  • Cash received from customers: $500,000
  • Cash paid to suppliers: $300,000
  • Cash paid for equipment: $100,000
  • Cash raised from issuing new shares: $200,000

Based on this information, what would be the net cash flow from operating activities for XYZ Corp?

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