A cash-flow statement shows you where your money comes from and where it goes. There are three sections. The first is the section. It reflects all cash inflows including income from wages, gifts, investments, and so on. The section is next, where expenses are classified as fixed or variable. And the last part is the of the cash in and cash out, which shows what you have left or what you have overspent in a given time period.

Receipt or cash in section; Payments or cash out section; Net section

Explanation:

A cash-flow statement shows one where money comes from and where it goes. In a cash flow statement, there are three sections. The first is the cash in section or receipt section. It shows all the cash inflows which include income from wages, gifts, investments, and so on.

The cash out or payments section is next, whereby the expenses are classified as either fixed or variable.

A fixed expenses are expenses that does not change with production level e.g loan payments while variable expenses very with production level.

And the last part is the net section of the cash in and cash out. This shows what one has left or what one has overspent at a given time period.

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