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    Cash Flow Format

    Uploaded by

    rajesh shekar
    The document outlines two methods for preparing a cash flow statement. The indirect method calculates cash flow from operating activities by adjusting net profit for non-cash items and changes in current assets and liabilities. Cash flow from investing and financing activities is also shown. The direct method reports the actual cash amounts received and paid for operating, investing and financing activities without adjustments to net income. Both methods calculate total cash flow for the period and reconcile to the cash balance at the beginning and end of the year.

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    Download as DOCX, PDF, TXT or read online from Scribd

    Cash Flow Format

    Uploaded by

    rajesh shekar
    26 views2 pages
    The document outlines two methods for preparing a cash flow statement. The indirect method calculates cash flow from operating activities by adjusting net profit for non-cash items and changes in current assets and liabilities. Cash flow from investing and financing activities is also shown. The direct method reports the actual cash amounts received and paid for operating, investing and financing activities without adjustments to net income. Both methods calculate total cash flow for the period and reconcile to the cash balance at the beginning and end of the year.

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    Cash Flow Format-.docx

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    The document outlines two methods for preparing a cash flow statement. The indirect method calculates cash flow from operating activities by adjusting net profit for non-cash items and changes in current assets and liabilities. Cash flow from investing and financing activities is also shown. The direct method reports the actual cash amounts received and paid for operating, investing and financing activities without adjustments to net income. Both methods calculate total cash flow for the period and reconcile to the cash balance at the beginning and end of the year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    26 views2 pages

    Cash Flow Format

    Uploaded by

    rajesh shekar
    The document outlines two methods for preparing a cash flow statement. The indirect method calculates cash flow from operating activities by adjusting net profit for non-cash items and changes in current assets and liabilities. Cash flow from investing and financing activities is also shown. The direct method reports the actual cash amounts received and paid for operating, investing and financing activities without adjustments to net income. Both methods calculate total cash flow for the period and reconcile to the cash balance at the beginning and end of the year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Cash Flow Statement (Indirect Method)

    Cash Flow from Operating activities

    Net Profit before taxation


    ADD non-operating exp/non-cash expenses
    Less non-operating income/non-cash income
    Add Decrease in current assets
    Add Increase in current liabilities

    less Increase in current assets


    Less decrease in current liabilities
    Total (A)
    Cash Flow from Investing activities
    Less Purchase of fixed assets/investment
    ADD Sale of fixed assets/investment
    ADD interest received/divided received/rent received
    Total (B)
    Cash Flow from financing activities
    ADD Issue of share/debenture/loan
    Less Redemption of share/debenture/loan
    Less dividend paid/interest paid
    Total (C)
    Total Cash flow during the year (A+B+C)
    Add Cash and Cash equivalent at the opening of the year
    = Cash and Cash equivalent at the end of the year
    Cash Flow Statement (Direct Method)
    Cash Flow from Operating activities

    Cash received from Customer


    Less Cash Paid for Purchase/ Merchandise
    Less Cash Paid to employees
    Less Income Tax
    Total (A)

    Cash Flow from Investing activities


    Less Purchase of fixed assets/investment

    ADD Sale of fixed assets/investment


    ADD interest received/divided received/rent received

    Total (B)
    Cash Flow from financing activities

    ADD Issue of share/debenture/loan


    Less Redemption of share/debenture/loan

    Less dividend paid/interest paid


    Total (C)

    Total Cash flow during the year (A+B+C)


    Add Cash and Cash equivalent at the opening of the year

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