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C. The cash flows statement
The cash flows statement records all cash operations realized by the company during the period. Thus, it provides an explanation for the change in cash position on the company’s bank account between the beginning and the end of the period. A cash flows statement usually accounts for three categories of cash flows: cash flows from operating activities (proceeds from sales, payment of wages, purchase of raw materials, payment of Value Added Tax, etc …), cash flows from investing activities (purchase of equipments, buildings, intangible assets, shares in associates, etc …) and cash flows from financing activities (payment of interests on debt, reception of a loan, repayment of a loan, etc …). The sum of all these three categories of cash flows will yield the total variation in cash position for the given period. We will not detail an example of a cash flow statement because it is by nature less standard to build than an income statement or a balance sheet, and its content is intuitive enough.