How does the cash flow statement complement the income statement and balance sheet?

Question

I am an Accounting II student and I am having trouble understanding some of the principles of accounting.

Answer 1

It shows where the money went. Profit might not translate to cash, in fact it never does.
Say you sell some merchandise and the income statement shows a profit of $100 but your bank balance didn't go up $100 why not?
Maybe you had depreciation expense, or amortization, you don't write checks for that so you add it to your profit. So now you might be off $200 or more what else caused cash not to be up? Maybe you didn't collect the receivables or collected more than you sold this month or year. Or maybe you still owe for some of the expenses, a change in AP might account for some. If you sold an asset the amount of money you received isn't your profit or loss but effect the bank balance. You might have paid $100 and depreciated 25 and sell it for 50 so you made 25 profit but put 50 in the bank. If you borrowed money or paid back debt that will change your bank balance too.
So when at the end you had $100 profit your bank balance could be over or short thousands but the owner will ask if I made a profit where is it?