Find and read the cash flow statement in a set of financial statements
The statement of cash flows shows where cash actually came from and went during the period, split into operating, investing and financing activities, and explains why cash moved differently from reported profit. Ask Search+ "Why did cash from operations differ from net income this year?" and the answer cites the reconciliation lines and any note it relies on, so you can read the figures yourself.
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Last updated October 2026
How to work through cash flows with Search+
- Upload the statements, including the notes and prior year
The cash flow statement points to other places: the debt note for borrowings and repayments, the leases note, and the supplemental disclosures underneath it. Add the full statements and last year's set, as PDFs or the Excel workbook your accountant sent, so answers can reach all of them.
- Ask about each activity section on its own
Ask separately about operating, investing and financing cash flows. Each section answers a different question: whether the business generates cash, what it spends on assets, and how it is funded.
- Follow the reconciling items into the notes
When an answer cites a large adjustment, such as an impairment or a change in working capital, ask a follow-up about the note that explains it. Open each citation to check the line and the amount.
Questions to ask about cash flows
What are the largest adjustments between net income and net cash from operating activities, and which way does each one go?
How much cash went into receivables, inventory and payables this year compared with last year?
How much was spent on property and equipment, and were any businesses acquired or assets sold during the period?
What borrowings were drawn or repaid, and were any dividends paid or shares bought back?
What noncash investing or financing transactions are disclosed, such as assets acquired through leases or debt converted to equity?
What to look for in a cash flow statement
Operating activities cover the cash effect of running the business, investing activities cover buying and selling long-term assets and businesses, and financing activities cover borrowing, repaying, issuing shares and paying owners.
Most companies use the indirect method, which starts from net income and adjusts for noncash items and working capital changes. The direct method lists cash received from customers and paid to suppliers instead. Ask which method a statement uses before reading the operating section.
Frameworks give different answers on where interest and dividends paid or received belong, so the same payment can sit in operating activities in one set and financing in another. Check the policy note before comparing companies.
Cash paid for interest and income taxes, and significant noncash transactions, are often shown at the foot of the statement or in a note. They are easy to miss when reading only the totals.
Search+ finds the relevant lines by meaning and cites the excerpt it used. An answer can still pick up the wrong line or period, so open the citation and confirm each amount against the statement.
Cash flow wording you may see and what to ask next
| Wording you may see | What it usually signals | A follow-up question |
|---|---|---|
| "Adjustments to reconcile net income to net cash provided by operating activities" | The indirect method reconciliation | Which adjustments are the largest, and what does each relate to? |
| "Changes in operating assets and liabilities" | Working capital movements | Which working capital item used the most cash? |
| "Purchases of property and equipment" | Capital spending in investing activities | How does this year's capital spending compare with last year's? |
| "Proceeds from" or "repayments of" borrowings | Debt activity in financing | What does the debt note say about the new borrowing or repayment? |
| "Supplemental disclosure of cash flow information" | Interest and taxes paid | How much cash was paid for interest and for income taxes? |
| "Noncash investing and financing activities" | Transactions with no cash movement | Which noncash transactions are listed, and how large are they? |
| "Restricted cash" | Cash that cannot be used freely | What restrictions apply, according to the notes? |
What is a cash flow statement?
The cash flow statement is the primary financial statement that reports cash received and paid during a period, grouped into operating, investing and financing activities, and reconciles opening cash to closing cash.
Cash flow statement questions
Can Search+ explain why a profitable company had negative operating cash flow?
Will it tell me which method the cash flow statement uses?
Can it find interest paid when it is not on the face of the statement?
Can it give me free cash flow?
Should I treat its reading of cash flows as financial advice?
Follow the cash, not just the profit
Start a workspace, upload the statements, and ask where the cash came from and where it went.
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