STATEMENT OF CASHFLOWS (DIRECT & INDIRECT METHOD)

Indirect Method:-

Company Name

Statement of Cashflows

For period ended 20XX

Cashflows from operating activities

Net Income
Add) Increase in Depreciation/Accumulated Depreciation
Add) loss
Less) Gain
Adjustment of Working Capital Items
Less) Increase in A/R
Less) Increase in Inventories
Add) Increase in A/P
Add) Increase in Accrual Liabilities
Add) Increase in Accrued Tax
Add) Increase in Deferred Tax
Less) Increase in Prepaid Expenses
Net Cash provided/Used by Operating Activities
(Used = Negative
Provided = Positive)
Cashflows from investing activities
Cashflow from fixed & other Assets
Net Cash provided/Used by investing activities
Cashflows from financing activities
Cashflow from fixed & other Assets
Add) increase in N/P
Add) increase in Long term debt
Add) increase in Common stock
Less) Dividend (if paid, not declared)
Net Cash provided/Used by financing activities
Net Cash provided/Used by Business Activities
Add) Opening Balance Cash & Equivalents
Opening Balance Cash & Equivalents
 EBIT (earnings before interest & tax)

Less) Interest

EBT (earnings before tax )

Less) Tax

EAT(earnings after tax)/Net Income

Direct Method:-
Company Name

Statement of Cashflows

For period ended 20XX

Cashflows from operating activities

Cash received from customers
(Sales – Decrease in A/R)
Less) Cash paid to employees & suppliers
( CGS
+ Increase Inventories
- Depreciation (if inclusive)
+ Increase in prepaid expense
+ Decrease in A/P
+ Decrease in Accruals
+ Selling & Admin exp)
Less) Interest Paid
(Interest
+ Decrease in Accrual exp
+ Increase in prepaid interest (if any))

Less) Tax Paid

(Tax
+ Increase in prepaid tax
+ Decrease in Tax accrual
+ Decrease in deferred Tax)
Deferred = Late
Net Cash provided/Used by Operating Activities
(Used = Negative
Provided = Positive)