What is the primary purpose of a cash flow statement?

The primary purpose of a cash flow statement is to provide insights into a company's cash inflows and outflows over a specific period. This statement is crucial for understanding how cash is generated and spent within a company. It breaks down the sources of cash, such as operating activities, investing activities, and financing activities, allowing stakeholders to assess the liquidity of the business.

By detailing how cash moves within the organization, the cash flow statement helps investors, management, and other stakeholders evaluate the company's ability to meet its financial obligations, fund operations, and make investments. It complements other financial statements by giving a dynamic view of financial health, focusing on cash rather than just overall profitability, which can be impacted by non-cash items.

The other options, while related to aspects of financial reporting, do not capture the specific role of a cash flow statement. Summarizing total assets, reporting overall financial position, and detailing earnings per share are functions addressed by the balance sheet and income statement, rather than by the cash flow statement.