When in the statement of cashflows, the cash inflows and the outflows are added, the result is the change in the cash balance.
The statement of cashflows shows the movement of cash in a company and how much cash the company is left with at the end of the period.
The statement includes:
Cash outflows are denoted in negatives and when added to cash inflows, show the change in the cash that the company has / its balance.
In conclusion, adding the cash inflows and outflows shows the change in cash.
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