Which financial statement summarizes sources and uses of cash?

The statement of cash flows is the financial statement that specifically summarizes the sources and uses of cash over a designated period of time. It provides insight into how cash is generated and utilized within an organization, detailing cash inflows and outflows from operating, investing, and financing activities. This is crucial for understanding a company's liquidity and financial health because it shows the actual cash available to a business, which is fundamental for meeting obligations, funding operations, and investing in growth.

In contrast, the balance sheet presents a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and equity. While it is essential for assessing an organization’s financial stability, it does not focus specifically on cash movements.

The income statement summarizes a company's revenues, expenses, and profits over a certain period, highlighting operational performance rather than cash flow specifics. Lastly, the statement of owner's equity reflects changes in ownership interest, capturing elements like contributions and distributions, but again, it does not directly address cash sources or uses.

Therefore, the statement of cash flows is the most relevant document for assessing a company's cash-related activities.