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    Module 15 - Statement of Cash Flows

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    cristinepejocpa
    Statement of Cash Flows

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    Module 15 - Statement of Cash Flows

    Uploaded by

    cristinepejocpa
    4 views4 pages
    Statement of Cash Flows

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    Module 15_Statement of Cash Flows

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    Statement of Cash Flows

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4 views4 pages

    Module 15 - Statement of Cash Flows

    Uploaded by

    cristinepejocpa
    Statement of Cash Flows

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    FINANCIAL ACCOUNTING AND

    REPORTING

    2020-2021
    COLLEGE OF BUSINESS AND MANAGEMENT
    MODULE 15 – Statement of Cash Flows

    Name Of Student: Week Number:


    Course Code:AEC2 Name of Faculty: Judith P. Piamonte
    Course Title:Financial Accounting and Reporting

    I. OBJECTIVES:

    At the end of this lesson, the students should be able to:

    1) Discuss the contents of Statement of Cash Flows


    2) Define the elements in the Statement of Cash Flows
    3) Familiarize on the information required to be presented on the face of the Statement
    of Cash Flows.
    4) Solve problems related to the financial statement.

    II. LESSON:

    A Statement of Cash Flow is a financial statement that shows the cash receipts and
    cash disbursements of an entity as a result of its operating, investing, and financing activities.

    This statement is essential to a business entity because this will give the user the
    following valuable information:

    1) Whether or not the business enterprise can settle its monetary obligation when they
    mature.
    2) How the business utilized its cash;
    3) Where the profit of the business go;
    4) The source of money of the business which was used in financing its big project;
    5) How they spent the proceeds of loan taken from a financing institution; and
    6) The major sources and uses of cash during the accounting period.

    The Statement of Cash Flows summarizes the receipts and disbursement of cash as a
    result of:

    1) Operating activities
    2) Investing activities; and
    3) Financing activities

     Operating activities pertain to transactions that are directly related to the company's main
    course of business.
     Investing activities refer to "where the company puts its money". These activities include
    long-term investments, acquisition of property, plant and equipment; and other transactions
    related to non-current assets.
     Financing activities include transactions in which a company acquires its funds. These
    include loans from banks (long-term liabilities) and contributions from owners.

    Illustration 13c-1

    A summary of cash flows for Badaf Beauty Salon for the fiscal year ended June 30, 2020, is
    shown below:

    Cash receipts:
    Received from customers P420,000
    Received from the proprietor as additional investment 30,000
    Cash Payments:
    Paid for operating expenses 235,000
    Paid for acquisition of land 90,000
    Paid to owner for personal use 105,000

    The cash balance as of July 1, 2020 was P50,000

    REQUIRED: Prepare a statement of cash flows for Badaf Beauty Salon for the year ended June
    30, 2020.

    //jppiamonte –Financial Accounting and Reporting Page 2 of 4


    .

    III. ACTIVITIES:

    Using any reliable reference materials that you have, practice solving problems related to Non-
    profit Organization

    Practice by answering the following problems. You may use MS Word, MS Excel, or a clean
    sheet of paper for your answers.

    Activity 1:

    IV. ASSESSMENT:

    If you have your laptop/computer, you may use MS Excel for this part. If you cannot do it in
    MS Excel, put your answers on clean sheets of paper, take photos of them, and submit your
    output via Google Classroom.

    //jppiamonte –Financial Accounting and Reporting Page 3 of 4


    V. REFERENCES:

    Ampongan, O. E., Fundamentals of accounting, part 1


    Valix, C.T., Peralta,J.F., Valix, C.A.M.(2015). Financial accounting volume 1 & 2.GIC Enterprises &
    Co., Inc.
    Ballda, W., & Ballada, S. (2020). Accounting fundamentals (6th ed.).
    Ballada, W., &Ballada, S. (2016). Basic accounting made easy.
    Onsay, Emmanuel A., Chavez, Rosalie V., (2019)Fundamentals of Accounting for Non-Accountancy
    Students Instructional Material ParSU
    Abner, Rina A., (2020)Financial Accounting and Reporting Students Instructional Material ParSU

    Prepared by: Reviewed by: Approved:

    JUDITH P. PIAMONTE ROLAN JON GO BULAO, MA RINA A. ABNER, CPA, MBA, MSA
    Faculty Program Director Dean

    //jppiamonte –Financial Accounting and Reporting Page 4 of 4

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