What are the three main components of the statement of cash flows?

The three main components of the statement of cash flows are indeed operating activities, investing activities, and financing activities.

Operating activities encompass the cash flows generated from the core business operations, including cash received from customers and cash paid to suppliers and employees. This section reflects how well the company is generating cash from its regular business operations.

Investing activities include cash transactions for the purchase and sale of physical and financial investments. This could involve the acquisition or sale of property, plant and equipment or investments in other businesses. This component provides insights into the company's growth and expansion strategies.

Financing activities involve cash flows related to the company’s capital structure, such as issuing or repurchasing stock and borrowing or repaying loans. This section reveals how a company finances its operations and growth through debt and equity.

Each of these components provides relevant information for assessing a company’s liquidity, financial flexibility, and overall cash management. Understanding the structure of the statement of cash flows is essential for evaluating a company's financial health and performance.