Cash flow statement indirect method.pptx

What we will discuss today is called Cashflow Statement. Through this, we can basically know how much cash an organization has received at a certain time and how much cash has gone out. Through this cash flow statement, we will get to know these things, and now we will discuss how it is prepared.

There are three activities in a cash flow statement

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

1. Cash Flow Statement Indirect Method Operating Activities Cash from operating activities is the aggregate amount of cash flow reported in the operating activities section of the statement of cash flows of a business. Investing Activities Cash flows from investing activities is a line item in the statement of cash flows, which is one of the documents comprising a company's financial statements. Financing Activities Cash flows from financing activities is a line item in the statement of cash flows.

2. Frifry Company LTD Cash flow statement Cash flow for the year ended 12/31x1 Details Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities XXX XXX XXX XXX Net Change in Cash (+) Beginning Cash Balance XXX Ending cash balance XXX

3. Frifry Company LTD Cash flow statement Cash flow for the year ended 12/31x1 Details Cash flows from operating activities XXX Net Income Adjustment to reconcile net income to net cash flow from operating activities. XXX Depreciation Increase in current assets XXX (XXX) Decrease in current assets XXX Increase in current liabilities Decrease in current liabilities XXX (XXX) Gain on sale of fixed assets XXX (XXX) Loss from the sale of fixed assets XXX Net cash received / Used by operating activities Net Income Ending retained earnings (+) Dividend paid (-) Begining retained earning Depreciation Ending accumulated depreciation (+) Depreciation of the asset you sold (-) Beginning accumulated depreciation

4. Frifry Company LTD Cash flow statement Cash flow for the year ended 12/31x1 Details Cash flows from investing activities XXX Purchase of fixed assets XXX (XXX) Sale of fixed assets Long term investments XXX Net cash provided / Used by operating activities (XXX) If Cash Comes (+) If Cash Goes (-)

5. Frifry Company LTD Cash flow statement Cash flow for the year ended 12/31x1 Details Cash flows from financinging activities XXX Share issue XXX Bond/Debenture issue XXX Net cash provided / Used by financing activities (XXX) If Cash Comes (+) If Cash Goes (-) Bond/Debenture paid Long term loan paid Dividend paid (XXX) (XXX) XXX

6. Frifry Company LTD Cash flow statement Cash flow for the year ended 12/31x1 Details Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities XXX XXX XXX XXX Net Change in Cash (+) Beginning Cash Balance XXX Ending cash balance XXX