3

F
Cash Flow Statement

(a)Cash from Sales

Amount
Particulars

Total Sales
in
XXX
Add: Decrease Debtors& B/R
Or
Increasein Debtors & B/R XXX
Less:

Actual Collection

(b) Cash Paid for

Purchases
Particulars o ewo Amount

Add:
TotalPurchases
Decrease in Creditors& B/P
GOT XXX
Or
Less: Increase
in Creditors& E/P XXX
Actual Payment XXX
If instead of purchase, there is cost of goods soldinthe Profit&
Loss account,the purchase is to be computed as below:

Add:
Closing Inventory
Cost of Goods Sold o 9020 u0 ovat xxXXx
x
X XX
suoifo X XX
Less: Opening Inventory

Purchase XXX
(c) Cash Paid for Expenses
Amount Amount
Particulars

TotalExpenses as Debited in P/L Wc x XX

X
Add: Decrease in Outstanding Expenses
Increase in Prepaid Expenses
eoul bns ilor onem XXx X XX
oJbnslo onomersiCo XXX
Less: Non-cash Expenseslike Depreciation and Amorisation XXX
Increase in Outstanding Expenses
xxx
Decrease in
Prepaid Expenses
X XX XXX
XXx

(d)Cash from Operations

Amount Amount
Particulars

Cash Collected from Customers

XXX
Less: Cash Disbursement
Cash Payment to Suppliers
XXX
Cash Payment for Expenses
x xx XXX
Cash from Operation
 4.4 CASH FLows FROM OPERATING ACTIVITIES UNDER INDIRECT

Very
METHOD
often students are not provided with the Profit Loss
e101091
Account to prepare cash &
flow
8 coesri9

statement. They are given

opening and closing balance sheets and some additional
informations
n that case
they will be left with no other option but to follow the Indirect Method to find
out cash from o0og lo leo0 ef orer 0esroug lo Des
operation.
0d of el
oesienug em Jnuooo
Following two steps are involved for this purpose:
ofnavnl pried
Step I: Finding Out Operating Profit 2 eboo0
Particulars Amount Amount

Difference between
Opening Balance and Closing Balance of Surplus,

Add:
i.e.,

Proposed
Balance in Statement of Profit and Loss
Dividend (forlast
year)
e XX X
XXX
Interim Dividend
paid during the year eveluoiha XXX
Transfer to Reserves
Provision for Tax
(current year) A bae0
921169%pmibrista
XXX
XXX
Extra-ordinary Items Debited to Statement
Less:
of Profit and Loss XXX xxx
Poensqye3 bie
Extra-ordinary ltems Credited to Statement of xxx
Profit and Loss
(e.g. bounty received from Govt.)
Refund of Tax Credited to Statement of and Loss SNil29
Profit
2seneqxeer
XXX XXX
Add: aeneqxe XXX
Non-Cash and Non-Operating Expenses
of Tangible Assets
Depreciation
X Xx
Amortization of Intangible
Assetsig0 mot dee)(b) XXX
Loss on Sale of Fixed Assets
asfuoih XXX
Deferred Expenses-Written off
XXX
Finance Cost (e.g. interest paid)
XxX XXX
Less: xxx
Non-Operating Income
Profit on Sale of Fixed Assets

Interest and Dividend Received

xxx
X Xx XXx
Operating Profit
xXx
Proposed dividend of current year will be appropriated out of profit in the next
General Meeting. So, proposed yearafterapproval at theAnnua
dividend of last
yearis considered above. This is as
per AS 4 (Revised).
 5 5

X x X
x
X
X
xxx
xxx
X
x
x x
W
Cash Flow Statement

Cash Flow Statement

(DirectMethod)

Particulars Amount Amount Amount

1. Cash Flows from Operating Activities

Collection from Customers
X
Cash Sales
XXX
XX X
Less: Cash Paid to Suppliers
XXx
Cash Paid to
Employees X
for Other
Payment Operating Expenses XXX XXX
Cash Generated from Operation XX
Less: Income Tax paid
XXX
Cash Flow before Extra Ordinary Items XXX
Add: Extra-ordinary Receipts XXX
Net Cash from Operating Activities
XXX
2. Cash Flows from Investing Activities nele
Sale of Property, Plant and Equipment XXX
Sale of Long-term Investments X XX
Interest Collected X XX
Dividend Collected x X
svup3 es0 bnere XXX
ed e
Less: Purchase of Property, and Equipment
Plant XXX
Purchase of Long-term Investment X XX
Loans given X XX X X
Net Cash from Investing Activities XXX
3. Cash Flows from Financing Activities
Issue of Equity Share Capital, Preference Share Capital,
Debentures etc.
b XX>
Other Long-term Loan raised X XX

XXX
Less: Redemption of Preference Share Capital Debenture etc.
Shares X X
Buy-back of Equity

Repayment of Other Long-term Debt XXX

Payment of Interest XXX
XXx xXX

s
Payment of Dividend

Net Cash from Financing Activities XXX

Net Increase/Decreasein Cash and Cash Equivalents
X XX
Add: Cash and Cash at the begining of the year
XXX
Equivalents'

Cash and Cash Equivalents at the end of the year

wolittro XXX
x
i
5