Working capital movement is included in which section of the cash flow statement?Financing activitiesInvesting activitiesNet cash movementOperating activities

Understanding Cash Flow Statement Sections

1. Overview of Cash Flow Statement
   The cash flow statement is divided into three main sections: operating activities, investing activities, and financing activities. Each section provides insight into different facets of a company's financial performance.

2. Explanation of Each Section

   • Operating Activities: This section includes cash transactions related to the core business operations, such as revenues from sales and payments to suppliers and employees.
   • Investing Activities: This part reflects cash used for or generated from purchasing and selling physical and financial investments, including property, equipment, and securities.
   • Financing Activities: This section involves cash flows resulting from transactions with the company's owners and creditors, such as issuing stock, borrowing funds, or repaying debts.

3. Where Working Capital Movement Fits
   Working capital refers to the difference between a company's current assets and current liabilities. Movements in working capital primarily arise from changes in current assets (such as inventory and accounts receivable) and current liabilities (like accounts payable). These changes are related to the operational efficiency and day-to-day business activities rather than financing or investing.

Final Answer

Operating Activities: Working capital movement is included in the operating activities section of the cash flow statement.