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The purpose of the cash flow statement or statement of cash flows is to provide information about a company's gross receipts and gross payments for a specified period of time.
Statement of Cash Flows. 4.5.10 The government must present a statement of cash flows for proprietary funds. The only acceptable. method of presentation is the direct method. In using the direct method, a reconciliation of operating. cash flows to operating income is required. 4.5.20 GAAP requires cash flow activity from blended component units to be presented on the statement of. cash flows; however, the statement should not contain cash flow activity from discretely presented. component units.