Relationship between Cash Flow,Financial Position and Comprehensive Income

To acquire the cash flow, its relationship with Financial Position and Statement of Comprehensive Income should be considered since cash flow has close relationship with Financial Position and Comprehensive Income. Preparing cash flow statement involves an understanding of both comprehensive income and financial position.

1. Comparative statements of financial position used in calculating the cash flows from all activities (operating, investing and financing).

2. A complete statement of comprehensive income used primarily in calculating cash  flows from operating activities.