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  • Cashflow Statement

    Diunggah oleh

    Vivek Ranjan
    160 tayangan14 halaman
    The document discusses cash flow statements, which show the inflows and outflows of cash from operating, investing, and financing activities over a period of time. Operating activities refer to core business operations that generate revenue. Investing activities involve the purchase and sale of long-term assets and securities. Financing activities relate to raising and repaying debt or equity. While cash flow statements are useful, they only reflect cash amounts and not accrual-based transactions, so net income may differ from cash flow.

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    The document discusses cash flow statements, which show the inflows and outflows of cash from operating, investing, and financing activities over a period of time. Operating activities refer to core business operations that generate revenue. Investing activities involve the purchase and sale of long-term assets and securities. Financing activities relate to raising and repaying debt or equity. While cash flow statements are useful, they only reflect cash amounts and not accrual-based transactions, so net income may differ from cash flow.

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    Attribution Non-Commercial (BY-NC)
    Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    160 tayangan14 halaman

    Cashflow Statement

    Diunggah oleh

    Vivek Ranjan
    The document discusses cash flow statements, which show the inflows and outflows of cash from operating, investing, and financing activities over a period of time. Operating activities refer to core business operations that generate revenue. Investing activities involve the purchase and sale of long-term assets and securities. Financing activities relate to raising and repaying debt or equity. While cash flow statements are useful, they only reflect cash amounts and not accrual-based transactions, so net income may differ from cash flow.

    Hak Cipta:

    Attribution Non-Commercial (BY-NC)
    Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    dari 14

    CASHFLOW STATEMENT

    By to edit Master subtitle style Click Bimal Kumar Chand Chandni Bharti Dhruv Danish

    5/5/12

    MEANING

    CASH
    i. ii. iii.

    Cash in hand Demand Deposits in Banks Cash Equivalents

    Cash equivalents are short-term, highly liquid investments, readily convertible into cash and which are subject to insignificant risk of changes in values. 5/5/12

    Flow:flow means flow of cash from business to economy and economy to business. Statement:statement is a performa prescribed by Charted Accountant Act,1948.

    Thus,
    5/5/12

    cash flow statement is a

    Categories of Inflows And Outflows

    The statement of cash flow shows three main categories of cash inflows and cash outflows, namely : operating, investing and financing activities. Operating activities are the principal revenue generating activitiesof the enterprise. Investing activities include the 5/5/12 acquisition and disposal of

    Operating Activities

    Cash Outflows:
    Cash from sales Cash received from

    Debtors

    Cash received from commision and fees royalty and other revenues

    5/5/12

    Investing Activities

    Cash inflow:
    Sale of fixed assets Sale of investments Interests received Dividend received

    5/5/12

    Financing Activities

    Cash inflow:
    Issue of shares Issue of debuntures in cash Proceeds of long term short term borrowings

    5/5/12

    Cash flow Fund flow

    Meaning of fund:means only cash

    component ofcurrent assets.

    Objective:is to know about the changes occurred in cash position between two balance sheet dates. Basis of preparation:increase in current liability or decrease in current asset results in increase in cash or vice versa. Utility:useful for short term analysis Effect of transaction:effect of a transaction only on cash is considered Cash balances:opening and closing balances are shown in cash flow statement

    5/5/12

    Limitations of cash flow statement


    Though it is true that cash flow statement is very useful now-a-days and serves many purposes. But it is necessary to take certain precautions while making use of this important tool.

    It is very difficult to precisely define the term cash


    5/5/12

    There are controversies over a

    As the present business moves from the cash basis to accrual basis, the prepaid and credit transactions might be represented an increase in working capital and it would be misleading to equate net income to cashflow because a number of non cash items would affect the net income.
    5/5/12

    Balance sheet
    liabilities Paid up capital Retained earnings 2005 (Rs. 000) 50 2006 (Rs. 000) 50 assets 2005 (Rs.000) 2006 (Rs.000) 1125 Gross fixed 1000 assets Accrued (100) depriciation inventory 100

    350

    415

    (175)

    Long term 500 debts Notes payable Accounts payable total 5/5/12 80

    550 100

    110 60

    Accounts 50 recevables cash total 10 1060

    80 1060

    90 1205

    85 1025

    Income Statement (Rs.000)

    Sales 1200 Cost of goods sold (800) Gross profit 400 Selling,general and administartion (150)
    5/5/12

    EBIT

    Additional information (Rs.000) Dividend paid 35 Additions to be retained 65 Depreciation 75


    5/5/12

    THANK YOU!

    5/5/12

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