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The cash flows from operating (the first line), investing (the second line) and financing (the third line) activities are shown separately, and the total of the different activities gives the increase or decrease in cash over the year (the fourth line). The net increase or decrease in cash over the year (the fourth line) is then added to the opening cash position at the start of the year (the fifth line) to obtain the closing cash position at the end of the year (the sixth line). This can be checked against the cash position of the company in the closing statement of financial position. Note that the net cash flow may show an increase or decrease. Opening and closing cash and cash equivalents may be positive or negative, i.e. overdrafts. Positive cash balances are shown under current assets in the statement of financial position and negative cash balances or overdrafts are shown as under current liabilities in the statement of financial position.

 5.4 Statement of cash flows