Just about everyone has heard the phrase "cash is king" in investing. That's true for business finances, too. Cash flow is how businesses pay their employees, buy materials and cover basic expenses.

The cash flow statement describes how cash enters and leaves a company for the period. The statement contains sections for operating, investing and financing activities. The direct method pertains to ...

Just about everyone has heard the phrase “cash is king” in investing. That’s true for business finances, too. Cash flow is how businesses pay their employees, buy materials and cover basic expenses.