The third financial statement that Joe needs to understand is the
Statement of Cash Flows. This statement shows how Direct Delivery's cash
amount has changed during the time interval shown in the heading of the
statement. Joe will be able to see at a glance the cash generated and
used by his company's operating activities, its investing activities,
and its financing activities. Much of the information on this financial
statement will come from Direct Delivery's balance sheets and income
statements.
The three financial reports that Marilyn introduced to Joe—the income
statement, the balance sheet, and the statement of cash flows—represent
one segment of the valuable output that good accounting software can
generate for business owners.
Marilyn now explains to Joe the basics of getting started with recording his transactions.