The Cash Flow Statement

Haseeb Afzal khan 19202015-015. Adil Ali 19202015-010.

Statement of changes in financial position : cash flow statement.

Cash: Cash means all cash + cash equitable + marketable securities + bank balance..

Inflows Money that a business receives Sales revenue Grants Loans Capital.

Preparing a Statement of Cash Flows. Uses net operating income as the starting point to get net operating cash flow.

Particulars A Cash flows from operating activities (+) cash receipts from customers (-)cash paid to suppliers Cash generated from operations (-)income taxes paid Cash flows before extraordinary items (-)extraordinary items Net cash flows operating activities B Cash flows from investing activities (+)sake of fixed assets (+)sake of investments (+)interest received (+)divided received (-)purchase of fixed assets (-)purchase of investments Net cash flows from investing activities C Cash flows from financing activities (+)proceeds from issue of shares (+)proceeds from issue of debt (+)proceeds from borrowings (-)redemption of debt (-)repayment of borrowings (-)divided paid (+)interest paid Net cash flows from financing activities A+B+C Net increase/decrease in cash Cash at the beginning of period Cash at the end of period ……….. ………. …….. …….. ……. …….. …….. ……. …….. …….. …….. ……. ……… ……… Amount (RS) Amount (RS) ……… ……… ………. ……… ……...

The Cash Flow Statement. The cash flow statement provides Information about:.

Preparing a statement of cash flows. Order of presentation : 1. Operating activities. 2. Investing activities . 3. Financing activities. Three Sources of Information : 1. Comparative balance sheets 2. Current income statement 3. Additional information.

Statement of cash flows. Operating activities. Investing activities.

Basic structure of a statement of cash flows. Operating activities.

Preparing the statement of cash flows. Indirect and direct Methods.

Cash Flow From Operating Activities :Direct Method.

Cash Flow from Operating Activities : Indirect Method.

Highlighting cash flow from different activities.

Does not show the liquidity position of the firm.

Advantages of a Cash Flow Statement:. Show when excess cash will be available.

Advantages of cash flow statement. Helpful in planning and co-ordination..

Disadvantages of a cash flow statement:. Requires a lot of time.

CASH FLOW STATEMENTS. FUND FLOW STATEMENTS. Shows causes for changes in cash..

Basis of Differences. Cash Flow. Difference between cash flow statement and funds flow statement.

Problem :. From the following summary of cash Account of X Ltd., prepare Cash Flow Statement for the year ended 31sr March 2007 in accordance with AS-3 using the direct method. The company does not have any cash equivalents..

Summary (cash account)31.3.2007. To Balance b/d 1.4.2006 To Equity Shares To Receipt from Customers To Sale of Fixed Assets RS. 50 300 2,800 100 3,250 By Payment to Suppliers By Purchase of Fixed Assets By Overhead Expenses By Wages & Salaries By Taxation by Dividends By Repayment of Loan By Balance c/d (31.o8.2007) RS. 2,000 200 200 100 250 50 300 150 3,250.

Any. question???.

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