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    Entrep Week 5

    Uploaded by

    edward.mkl12345
    The document discusses a financial plan and cash flow statements. It provides information on how cash flows into and out of a business and categories of cash flow. It also includes an example cash flow statement for a company with cash receipts, payments and the ending cash balance.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Entrep Week 5

    Uploaded by

    edward.mkl12345
    16 views25 pages
    The document discusses a financial plan and cash flow statements. It provides information on how cash flows into and out of a business and categories of cash flow. It also includes an example cash flow statement for a company with cash receipts, payments and the ending cash balance.

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    The document discusses a financial plan and cash flow statements. It provides information on how cash flows into and out of a business and categories of cash flow. It also includes an example cash flow statement for a company with cash receipts, payments and the ending cash balance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views25 pages

    Entrep Week 5

    Uploaded by

    edward.mkl12345
    The document discusses a financial plan and cash flow statements. It provides information on how cash flows into and out of a business and categories of cash flow. It also includes an example cash flow statement for a company with cash receipts, payments and the ending cash balance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 25

    Financial plan:

    Cash Flow Statement


    2

    DAY 1
    3
    At the end of the lesson, the students should be able to:

    • define and articulate the concept of cash flow,


    understanding its significance in the financial
    statement;
    • analyze the components of a cash flow statement to
    gain a comprehensive understanding of how cash
    moves within a business; and
    • prepare a Statement of Cash Flow by analyzing
    accounts and reporting the needed information to
    decision-makers.
    4
    Cash-in, Cash-out!
    Directions: There will be two questions to be
    given. Write three (3) instances wherein a
    business receives cash and gives out cash.
    Enjoy!

    1. When does a business receive cash?


    2. When does a business give out cash?
    5

    “Happiness is a positive cash


    flow.”
    - Fred Adler
    6

    CASH FLOW
    7

    Cash Flow
    Cash flow in business refers to the
    movement of money into and out of a
    company. It represents the inflow and
    outflow of cash and cash equivalents, such
    as currency, checks, and bank deposits.
    8

    Cash Flow
    Cash flow is an important financial metric
    used to assess a company's liquidity,
    financial health, and its ability to meet
    short-term and long-term financial
    obligations.
    9

    Cash Flow
    It can be categorized into three main types:
    operating cash flow (cash generated from
    core business activities), investing cash
    flow (cash related to investments in assets),
    and financing cash flow (cash from or used
    for financing activities like loans and equity
    transactions).
    10

    THE CASH FLOW STATEMENT


    11

    Cash Flow Statement


    It is a financial statement that shows how
    changes in balance sheet accounts and
    income affect cash and cash equivalents
    and breaks the analysis down to operating,
    investing, and financing activities.
    12
    13

    Cash Flow Statement


    The Cash Flow Statement provides
    information about the cash receipts and
    cash payments. It shows the net increase
    or decrease in cash during the period and
    cash balance at the end of the period.
    14

    Cash Flow Statement


    If cash flow is not managed well,
    creditors and suppliers will tag the
    entrepreneur’s business negatively. As a
    result, the entrepreneur will not be able
    to renew their loans or buy supplies or
    materials on credit.
    15

    Cash Flow Statement


    The entrepreneur must allocate cash to
    pay suppliers and creditors as well as its
    employees. If the business runs out of
    cash, the entrepreneur should have an
    option to borrow from the bank or a
    financial institution.
    16

    Cash Flow Statement


    (example: lending agency, credit
    cooperative, etc.) provided that the
    entrepreneur has a good track record in
    paying his or her obligations. This is the
    reason why some individuals are denied
    loans because of their negative credit
    scores.
    17

    DAY 2
    18

    Cash Flow Statement


    – Sales revenues,
    fees, interest income, and dividends from
    investments and loans.
    19

    Cash Flow Statement


    – Operational
    expenses, investments, machine
    purchases and payment to creditors and
    suppliers.
    20

    ENRICHMENT ACTIVITY
    21

    Cash Flow Statement


    Cash disbursement
    ₱ 2,000.00 Dividends paid ₱ 23,500.00
    for office supplies
    Cash payment for
    ₱ 5,800.00 Capital expenditures ₱ 35,000.00
    vehicle repair
    Cash receipt for Proceeds from
    ₱ 250,000.00 ₱ 25,000.00
    services rendered issuing debt
    Purchase of machine Cash receipt for
    ₱ 13,000.00 ₱ 8,000.00
    on account equipment sold
    Cash receipt for
    ₱ 12,000.00 Interest paid ₱ 4,000.00
    interest received
    KK COMPANY 22
    STATEMENT OF CASH FLOWS
    FOR THE MONTH ENDING DECEMBER 2022

    Cash receipt for services rendered ₱ 250,000.00


    Cash receipt for interest received ₱ 12,000.00
    Proceeds from issuing debt ₱ 25,000.00
    Cash receipt for equipment sold ₱ 8,000.00
    TOTAL CASH IN ₱ 295,000.00

    Cash disbursement for office supplies ₱ 2,000.00


    Cash payment for vehicle repair ₱ 5,800.00
    Dividends paid ₱ 23,500.00
    Capital expenditures ₱ 35,000.00
    Interest paid ₱ 4,000.00
    TOTAL CASH OUT ₱ 70,300

    CASH BALANCE, ENDING ₱ 224,700.00


    23

    "The plans of the diligent lead


    to profit as surely as haste leads
    to poverty."
    - Proverbs 21:5
    24

    DAY 3
    25

    PETA 3

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