STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

Statement of cash flows is a reports that summarizes the operating, investing, and financing
activities of a business over a period of time. The balance sheet summarizes the cash on hand and
the balances in other assets, liabilities, and owner’s equity accounts, providing a snapshot at a
specific point in time. The statement of cash flows report the changes in cash over a period of time
and most importantly explains those changes.
The Purpose of statement of cash flows is to provide information about a company’s cash inflows
and outflows that can show the entity’s ability to pay dividens and meet obligations. Other than
that, statement of cash flow investors can make predictions of the amounts, timing, and uncertainty
of future cash flows better than they can from accrual-basis data. The readers of statement of cash
flows can know the reasons for the difference between net income and net cash provided (used)
by operating activities and his/her know why assets and liabilities changed during the period (cash
investing and financing). Statement of cash flow is prepared on cash basis and classified into three
categories :
1. Operating activites
Include the cash effects of transactions that create revenues and expenses. They thus enter
into the determination of net income. For example, cash generated from the sale of goods
(revenue) and cash paid for merchandise (expense) are operating activities because
revenues and expenses are included in net income.
2. Investing activities
Include acquiring and disposing of investment and property, [lant, and equipment; and
lending money and collecting the loans. For example, cash generated from the sale of land
and cash paid for an investment in another company are included in this category. (Note
that interest received from loans is included in operating activities).
3. Financing activities
Include obtaining cash from issuing debt and repaying the amouts borrows; and obtaining
cash from shareholders, repurchasing shares, and paying dividends. (Note that interest paid
on long-term debt is included in operating activities).
The sum of that 3 sections equals the net increase od decrease in cash for the period
TYPES OF CASH INFLOWS AND OUTFLOWS
 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

Preparing the Statement of Cash Flows

There are 3 major step to prepare the statement of cash flow, but we must have data as
resources of cash flow. The data come from comparative statement of financial posisiton, current
income statement and additional information. So the 3 major step are :
1. Determine net cash provided/used by operating activities by converting net income from
an accrual basis to cash basis.
2. Analyze changes in non-current asset and liability accounts and record as investing and
financing activities, or disclose as non-cash transactions.
3. Compare the net change in cash on the statement of cash flows with the change in the Cash
account reported on the statement of financial position to make sure the amounts agree.
 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

Kolom Net Change menunjukan kegiatan atau aktivitas yang terjadi sejak 01 Januari hingga
31 Desember dan merupakan selisih dari data pada neraca tahun 2016 dengan tahun 2015.
1. Kelompok Aktiva:
Apabila angka yang dihasilkan pada kolom Net Change positif maka terjadi pengeluaran
kas dan apabila negative maka terjadi penerimaan kas.

2. Kelompok Kewajiban dan Ekuitas (Passiva):Apabila angka yang dihasilkan pada kolom
Net Change positif maka terjadi realisasi kas masuk sedangkan bila tanda negative maka
telah terjadi penerimaan kas.
Contoh laporan arus kas :

Indirect and Direct Methods

In order to perform Step 1, a company must convert net income from an accrual basis to a cash
basis. This conversion may be done by either of two methods : indirect and direct methods.
 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

The adjusts net income for items that do not affect cash. The reason why the company favor the
indirect method is it is easier and less costly to prepare and it focuses on the differences between
net income and net cash flow from operating activities.
The direct method shows operating cash receipts and payment, making It more consistent with
the objective of statement of cash flows.
 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

Using Cash Flow to Evaluate a Company

Free Cash Flow

In the statement of cash flows, net cash provided by operating activities is intended to indicate the
cash-generating capability of a company. Free cash flows describes the net cash provided by
operating activities after adjustment for capital expenditures and dividends.

Statement of Cash Flows – T-Account Approach

Many people like to use T-accounts to provide structure to the preparation of a statement of cash
flow. The use of T-Account is based on the accounting equation :
Assets = Liabilities + Equity
Cash + Non-Cash Assets = Liabilities + Equity
∆𝐶𝑎𝑠ℎ = ∆𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 + ∆𝐸𝑞𝑢𝑖𝑡𝑦 − ∆𝑁𝑜𝑛 𝐶𝑎𝑠ℎ 𝐴𝑠𝑠𝑒𝑡𝑠
So the change in cash is equal to the change in all of the other statement of financial position
accounts. To implement this approach, first prepare a large of T-Account, with sections for
operating, investing, and financing activities. Then, prepare smaller T-Account for all of other
non-cash statement of financial position accounts. Insert the beginning and ending balances for
each of these accounts. Enter debit and credit amount into the affected accounts. When all of the
changes in the T-accounts have been explained, you are done.
 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

In the following example of how T-accounts are used, a company receives a $10,000 invoice
from its landlord for the July rent. The T account shows that there will be a debit of $10,000
to the rent expense account, as well as a corresponding $10,000 credit to the accounts payable
account. This initial transaction shows that the company has incurred an expense as well as a
liability to pay that expense.

The bottom set of T accounts in the example show that, a few days later, the company pays
the rent invoice. This results in the elimination of the accounts payable liability with a debit
to that account, as well as a credit to the cash (asset) account, which decrease s the balance in
that account.

The T account has two primary uses, which are:

 To teach accounting, since it presents a clear representation of the flow of transactions

through the accounts in which transactions are stored.

 To clarify more difficult accounting transactions, for the same reason.

The T account concept is especially useful when compiling more difficult accounting
transactions, where the accountant needs to see how a business transaction impacts all parts
 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

of the financial statements. By using a T account, one can keep from making erroneous entries
in the accounting system.

For day-to-day accounting transactions, T accounts are not used. Instead, the accountant
creates journal entries in accounting software. Thus, T accounts are only a teaching and
account visualization aid.

Dalam penggunaan atau penerapannya di kehidupan sehari-hari, laporan cash flow ini biasanya
digunakan oleh perusahaan baik itu besar maupun kecil, karena suatu perusahaan harus memiliki
dan mengetahui mengenai laporan keuangannya terutama lajur kasnya yang dapat memengaruhi
penanaman investasi oleh investor sebagai sumber dana dan laporan ini juga harus diketahui oleh
para pemegang saham. Laporan ini mempunyai 3 kelompok bagian (Operating, Investing dan
Financing) dan metode (Direct dan Indirect) yang sudah dijelaskan diatas.

Contoh laporan arus kas atau Statement of Cash Flow :

 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

Namun tak dapat dipungkiri laporan cash flow juga dapat digunakan atau dibuat oleh Usaha Kecil
dan Menengah (UKM). Dengan bentuk pelaporan sesuai dengan Standar Akuntansi Keuangan
untuk Entitas Tanpa Akuntabilitas Publik (SAK ETAP) adalah ketetapan yang dihasilkan Ikatan
Akuntan Indonesia (IAI) dan diterbitkan pada 17 Juli 2009 untuk pelaku Usaha Kecil Menengah
(UKM) yang ingin menggunakan prinsip-prinsip laporan keuangan untuk menyediakan informasi
tentang posisi keuangan, kinerja keuangan, laporan arus kas, dan sebagainya.

SAK ETAP ini disusun tanpa harus mempertimbangkan akuntabilitas publik. Artinya, laporan
keuangan tersebut tidak diterbitkan untuk tujuan umum bagi pengguna di luar
usaha/perusahaan/eksternal. Oleh karena itu, para pelaku UKM bisa membatasi diri dalam
menyusun laporan keuangan berdasarkan SAK ETAP

Beberapa cara merancang cash flow yang ideal bagi bisnis UKM.
1. Beli dan Jual Barang secara Tunai
Demi memenuhi kebutuhan bahan baku atau keperluan barang yang lain, Anda pun
membelinya ke supplier dalam jumlah banyak secara tunai. Nah, agar cash flow tidak
mengalami masalah, olah barang tersebut menjadi produk Anda dan jual kembali kepada
pelanggan dengan pembayaran tunai pula. Jangan menerapkan sistem tempo karena bisa
saja pelanggan Anda tidak kunjung membayar tagihannya. Bahkan bukan tidak mungkin
pelanggan Anda akan kabur dan menolak untuk melakukan pembayaran. Oleh sebab itu,
sebaiknya lakukan penjualan dengan sistem pembayaran tunai. Dengan begitu, uang kas
Anda juga akan berada pada angka yang stabil.

2. Beli Barang dengan Sistem Tempo dan Jual secara Tunai

Pada masa awal berdirinya bisnis UKM, Anda mungkin akan sedikit struggling dalam hal
finansial. Untungnya, beberapa supplier biasanya memberikan batas waktu pembayaran
untuk para distributornya. Artinya, Anda bisa membeli barang dari supplier dan tidak
langsung membayarnya. Hal ini tentu akan sangat menguntungkan bagi Anda. Setelah
menerima barang dari supplier, segera jual kepada pelanggan dengan sistem pembayaran
tunai. Anda pun bisa menggunakan uang tunai pembayaran dari pelanggan untuk
membayar barang kepada supplier.

3. Beli Barang dengan Tempo Panjang dan Jual dengan Tempo Lebih Singkat
Sebagai contoh, Anda membeli barang dari supplier dengan sistem pembayaran bertempo
satu bulan. Jual kembali barang tersebut secara tunai kepada pelanggan. Jika ingin
menerapkan sistem tempo, Anda masih bisa melakukannya asalkan tempo yang ditetapkan
lebih singkat dari yang diberikan oleh supplier kepada Anda. Karena Anda mendapat
tempo selama satu bulan dari supplier, maka berikan batas waktu pembayaran kurang dari
sebulan pada pelanggan, misalnya satu atau dua minggu. Dengan begitu, Anda tidak akan
merasa kewalahan dalam melunasi pembayaran kepada supplier. Cash flow pun berjalan
lancer.
 STATEMENT OF CASH FLOWS

GSLC Accounting for Business Jacklyn Elza Ivane / 2201740804 / LC53

Contoh Statement of Cash Flows sederhana :