The statement of cash flows summarizes the changes in a firm's cash position for a specified period of time and details why the change occurred.

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The statement of cash flows provides information about the inflow and outflow of cash for a specific time period and explains the reasons for the changes in the cash balances. It helps in evaluating the liquidity position of the company, its ability to meet short-term obligations, and how it manages its cash resources.

The Statement of Cash Flows Summarizes the Changes in a Firm's