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Chapter 6. Cash > The Reverse Flip

The Reverse Flip

Everything on the cash flow statement comes from either the income statement or the balance sheet. But, searching through each kind of statement to try to figure out how they are linked can be rather confusing. To make the explanation of where each number comes from easier, try looking at the cash flow statement in another way. Figure 6-2 displays the cash flow statement as you would normally see it on the left. On the right-hand side of the figure, the numbers are listed first.

Figure 6-2. Normal (left) and reversed cash flow (right) statements.



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