 Operating Activities Assets + = Cash – (outflow)

 Investing Activities Assets - = Cash + (inflow)

 Financing Activities Liabilities + = Cash + (inflow)
Liabilities - = Cash - (outflow)

Balance Sheet
Liabilities Rs. Assets Rs.
Share Capital Fixed assets
Debentures Investments
Loans
Reserves & Surplus Current Assets
Current Liabilities
Working capital changes will go to operating activities

Format of Cash Flow Statement

Particulars Amt (Rs.) Amt (Rs.)
A) Cash Flow from Operating Activities
Net Profit as per Statement of P & L (Difference in CY & PY balance; XX
before tax)
Add: (to nullify or reverse the effect/ adding back parts of profit to +
find actual or natural profit)) +
i) Transfer to reserve (diff.) +
ii) Interim dividend +
iii) Proposed dividend (declared) +
 iv) Provision for tax +
v) Extraordinary items debited to P & L account (-)

Adjustment for… (non-cash expenses, non-operating expenses, non-

operating incomes & losses) +
1. Depreciation +
2. Amortization/ expenses written off +
3. Goodwill written off +
4. Preliminary Expenses written off +
5. Underwriting Expenses written off +
6. Discount on Issue of Shares of Debentures written off +
7. Loss on Sale of Fixed Assets - XX
8. Profit on Sale of Fixed Assets -
Operating Profit before Working Capital Changes XX
1. Increase in Current Asset (-)
2. Decrease in Current Assets +
3. Increase in Current Liabilities +
4. Decrease in Current Liabilities (-)
[CA increase results in cash payment (-) & sale of CA cash inflow (+),
CL increase results in cash inflow (+) & CL decrease cash outflow (-)]
Cash Generated (Flow) from Operating Activities XX
Tax Paid (-)
Net Cash from Operating Activities/ Net Cash Used in Operating XX/(XX)
Activities

B) Cash Flow from Investing Activities (FA/ Investment and

return received on it)
1. Purchase of Fixed Assets/ Investments (-)
2. Sale of Fixed Assets/ Investments +
3. Interest received (ROI)** +
4. Dividend received (ROI)** +
5. Rent received (ROI)** +
Net Cash from Investing Activities/ Net Cash Used in Investing XX/(XX)
Activities
C) Cash Flow from Financing Activities (shares/debenture/loan
and cost paid on it)
1. Issue of shares/ debentures +
 2. Term loan +
3. Redemption of preference/ debentures (-)
4. Loan paid (-)
5. Interest paid* (-)
6. Dividend paid* (-) XX/(XX)
Net Cash from Financing Activities/ Net Cash Used in Financing
Activities
D) Net Increase/ Decrease in Cash and Cash Equivalents (A+B+C) XX/(XX)
E) Opening Balance of Cash and Cash Equivalents + XX
F) Closing Balance of Cash and Cash Equivalents (@the end of XX
the year)