STATEMENT OF CASH FLOW

For economic decision

Historical statement of cash flow

+ Inflow
- Outflow
FORMAT:
Net Inflow (Outflow) from Operating Activities $ X(X)
Net Inflow (Outflow) from Investing Activities $ X(X)
Net Inflow (Outflow) from Financing Activities $ X(X)
Increase (Decrease) in Cash Flow $ X(X)
Cash & Cash Equivalents Beginning $ XX
Cash & Cash Equivalents Ending $ XX

OPERATING ACTIVITIES  Advances to Employees

 Inventory
 STETEMENT OF COMPREHENSIVE INCOME
 Office supplies
 Expenses and Income
 Prepaid Insurance
 Insurance Expense
 Prepaid Taxes
 Supplies Expense
 Prepaid Advertising
 Rent Expense
 Prepaid Rent
 Salaries Expense
 Rent Income
 CURRENT LIABILITIES
 Interest Income
 Accounts Payable
 Interest Expense
 Unearned Income
 Prepaid Expenses
 Salaries Payable
 Accrued Expenses
 Insurance Payable
 Accrued Income
 Interest Payable
 Unearned Income/Revenue
 Rent Payable
 Freight Out or Delivery Expense
 Supplies Payable
 Advertising Expense
 SALES
 PURCHASING OF INVENTORY
 COLLECTING OF ACCOUNTS RECEIVABLE
 CURRENT ASSETS  RENDERING OF SERVICES
 Cash on Hand  TRADE CREDITORS
 Cash on Bank  SHORT TERM INVESTMENTS
 Accounts Receivables
INVESTING ATIVITIES  INTAGIBLE ASSETS
 Goodwill
 NON- CURRENT ASSETS
 Patent
 PLANT,PROPERTY & EQUIPMENT
 Copyright
 Office Equipment
 Accumulated depreciation FINANCING ACTIVITIES
 Delivery Vehicle
 BORROWING
 Land
 NON- CURRENT LIABILITIES
 Furniture & Fixtures
 Bonds Payable
 Building  OWNER’S EQUITY
 Service Vehicle  Capital
 LONG TERM ASSETS  Withdrawal
 Bonds Receivable  REDEEM SHARES
 Long term Investments  ISSUING SHARES

EXCEPTIONS: DEFAULT ALTERNATIVE

1. Dividend Received O I
2. Dividend Paid F
3. Interest Received O I
4. Interest Paid O F
5. Taxes Paid O F/I
6. Borrowing F

OPERATING: DIRECT
1. Net Credit Sales $XX
+ Accounts Receivable Beginning XX
- Accounts Receivable Ending (XX)
XX
Cash Sales XX
Cash Received from Customers XX

2. Cost of Sales $XX

+ Accounts Payable Beginning XX
- Accounts Payable Ending (XX)
+ Inventory Ending XX
- Inventory Beginning (XX)
XX
Cash Purchase XX
Cash Paid to Suppliers XX
3. Operating Expenses $XX
+ Prepaid Expenses Ending XX
- Prepaid Expenses Beginning (XX)
+ Accrued Expenses Beginning XX
- Accrued Expenses Ending (XX)
Cash Payment to Operating Expenses XX

4. Other Income $XX

+ Unearned Income Ending XX
- Unearned Income Beginning (XX)
+ Accrued Income Beginning XX
- Accrued Income Ending (XX)
Cash Received from Other Income XX

5. Interest Expense $XX

+ Interest Payable Beginning XX
- Interest Payable Ending (XX)
Cash Payment to Interest XX

6. Income Tax Expense $XX

+ Income Tax Payable Beginning XX
- Income Tax Payable Ending (XX)
Income Tax Paid XX
OPERATING: INDIRECT
Net Income Before Tax $XX
Depreciation Expense XX
Amortization Expense XX
Interest Expense XX
Bad Debt Expense XX
Loss (Gain) on Sale X(X)
- Increase in Current Assets (XX)
+ Decrease in Current Assets XX
- Decrease in Current Liabilities (XX)
+ Increase in Current Liabilities XX
Cash Generated from Operation XX
Interest Paid (XX)
Income Tax Paid (XX)
Net Cash Flow from Operating Activities $X(X)

Net Inflow (Outflow) from Operating Activities $ X(X)

Net Inflow (Outflow) from Investing Activities $ X(X)
Net Inflow (Outflow) from Financing Activities $ X(X)
Increase (Decrease) in Cash Flow $ X(X)
Cash & Cash Equivalents Beginning $ XX
Cash & Cash Equivalents Ending $ XX
CASH CONTROLS
Imprest System
1. Collection- Deposit the following day
2. Disbursement- Check
3. Small Expenses- Petty Cash Fund
4. Bank Reconciliation- BOOK=BANK
BANK RECONCILIATION
11P ------------------------ BDO
Depositor
Creditor- debtor Relationship

BOOK BANK
Open up bank Account: Php 10,000 Cash in Bank Php 10,000 Cash on Hand Php 10,000
Cash on Hand Php 10,000 11P Company Account Php 10,000
Purchase Inventory and Paid: Php 5,000 Purchases Php 5,000 11P Company Account Php 5,000
Cash in Bank Php 5,000 Cash on Hand Php 5,000

BANK STATEMENT- end of the month

BANK RECONCILIATION- end of the month

RECONCILING ITEMS BOOK BANK

Deposit in Transit
- money that has been Cash in Bank XX
received by a company and Cash on Hand XX
sent to the bank, but has yet
to be processed and posted
to the account by the bank.
Outstanding checks
- Checks issued by company Purchases XX
but not yet recorded by the Cash in Bank XX
bank
Bank Service Charge 11P Company Account XX
Bank Service Charge XX
- Normal Balance: Credit
NSF/ DAIF Checks 11P Company Account XX
Not Sufficient Fund Cash on Hand XX
Drawn Account Insufficient Fund
Notes collected by the bank in favor of the Cash on Hand XX
depositor 11P Company Account XX
 BOOK BANK
Unadjusted Balance (not equal) XX XX
Deposit in Transit - XX
Outstanding Checks - (XX)
Bank Service Charge (XX) -
NSF/DAIF (XX) -
Notes Collected XX -
Error XX (XX) XX (XX)
Adjusted Balance (Equal) XX XX

Errors:
Collections not deposited and not recorded by the book: both Book and Bank
Note: BSC and NSF are DEBIT MEMO while Notes Collected is CREDIT MEMO
WORKING CAPITAL = Current Assets- Current Liabilities
RECEIPTS- Inflow
DISBURSEMENT- Outflow

Beginning Balance XX
Receipts XX
Disbursement (XX)
Ending Balance XX

If not equal:
Adjusted Book Balance 1,200,000
Adjusted Bank Balance 1,000,000
Cash Overage 200,000

Book > Bank – Cash Overage

Book< Bank- Shortage