What does the Statement of Cash Flows summarize?

The Statement of Cash Flows is designed to summarize the cash inflows and outflows of a business over a specific period, illustrating how cash is generated and utilized. This financial statement differentiates cash flows from operating, investing, and financing activities, providing insight into the company's current cash position.

Understanding this summary is critical for assessing a contractor's ability to manage cash effectively. It helps identify how cash is being used in operations, how much cash is derived from new financing or investments, and whether the cash generated from operations is sufficient to meet ongoing needs and obligations. This reflection on cash resources over time aids in making informed financial and operational decisions, such as budgeting for future projects and managing liquidity.

In contrast, other options focus on aspects that are not directly reflected in the Statement of Cash Flows, such as future cash needs or projected revenues, which may pertain more to forecasting and budgeting activities rather than the historical view that this statement provides. Thus, the correct answer emphasizes the role of the Statement of Cash Flows in tracking the current cash position and historical cash use.