What are the three broad categories of cash flows outlined in the statement of cash flows?

The three broad categories of cash flows outlined in the statement of cash flows are operating, investing, and financing activities. The operating activities section reflects the cash generated or used in the core business operations, including revenue from patient services and payments to suppliers and employees. This part focuses on the daily functions that generate the company’s primary revenue.

Investing activities involve cash flows related to the acquisition and disposal of long-term assets, such as property, equipment, and investments. This section indicates how much cash is invested in the company’s future operations through capital expenditures or generated from asset sales.

Financing activities encompass cash flows that result from transactions with the company’s owners and creditors, which include issuing or repurchasing stock and borrowing or repaying debt. This category provides insights into how a company funds its operations and growth through external financing.

Together, these three categories provide a comprehensive picture of a company's cash flow dynamics and financial health, highlighting how cash is generated and utilized over a specific period.