The period of time that the statement covers is chosen by the company. For example, the heading may state "For the Three Months Ended December 31, 2015" or "The Fiscal Year Ended September 30, 2015".
The cash-flow statement is one of the most useful financial management tools you will have to run your business. The cash-flow statement is divided into four categories:
1. Net cash flow from operating activities. Operating activities are the daily internal activities of a business that either require cash or generate it. They include cash collections from customers; cash paid to suppliers and employees; cash paid for operating expenses, interest and taxes; and cash revenue from interest dividends.
2. Net cash flow from investing activities. Investing activities are discretionary investments made by management. These primarily consist of the purchase (or sale) of equipment.
3. Net cash flow from financing activities. Financing activities are those external sources and uses of cash that affect cash flow. These include sales of common stock, changes in short- or long-term loans and dividends paid.
4. Net change in cash and marketable securities. The results of the first three calculations are used to determine the total change in cash and marketable securities caused by fluctuations in operating, investing and financing cash flow. This number is then checked against the change in cash reflected on the balance sheet from period to period to verify that the calculation has been done correctly.