A Working Capital Cash Flow Statement is an important financial tool that provides insight into the short-term financial health of a business. It’s used to measure the cash flow generated by current assets and liabilities without taking into consideration any long-term investments. This statement breaks down monies earned from sales and other activities, such as accounts receivables (money earned but not collected yet) and accounts payables (money not paid but still owed). It helps businesses understand how much capital their operations are generating for the company and how it can be put to use to effectively manage cash flow. By understanding the impact of working capital on cash flow, businesses can make better decisions about how to grow their companies in the future.