Scribd Logo
Upload

Welcome to Scribd!

  • Suresh G. Lalwani - Managerial Accounting Page 1 of 1

    Uploaded by

    akanksha chauhan
    27 views1 page
    This document summarizes the cash flow computation for a startup classic upholstery shop using the indirect method. The net cash flow from operating activities was $5,300. The net cash flow from investing activities was -$13,000 due to purchases of fixed assets. The net cash flow from financing activities was $16,000 from an increase in owner's equity. The cumulative cash flow was $8,300.

    Original Description:

    Original Title

    Untitled

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document summarizes the cash flow computation for a startup classic upholstery shop using the indirect method. The net cash flow from operating activities was $5,300. The net cash flow from investing activities was -$13,000 due to purchases of fixed assets. The net cash flow from financing activities was $16,000 from an increase in owner's equity. The cumulative cash flow was $8,300.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    27 views1 page

    Suresh G. Lalwani - Managerial Accounting Page 1 of 1

    Uploaded by

    akanksha chauhan
    This document summarizes the cash flow computation for a startup classic upholstery shop using the indirect method. The net cash flow from operating activities was $5,300. The net cash flow from investing activities was -$13,000 due to purchases of fixed assets. The net cash flow from financing activities was $16,000 from an increase in owner's equity. The cumulative cash flow was $8,300.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    CLASSIC UPHOLSTERY SHOP Cash Flow computation - Indirect Method

    Assumption: Start up Company - beginning of year balalances: 0


    Cash Flows from Operating Activities

    Net Profit (PAT) 18864

    Add: Depreciation for the year (added back) 1800


    Add: Increase in Utility Expenses outstanding 320 25700
    Provision for tax 4716 6836

    Less: Increase in Receivables (5) 2500


    Increase in Inventory (6,7,14,15) 16300
    Increase in Prepaid Insurance (10) 1600 20400

    Net Cash Flow from Operating activities (A) 5300

    Cash Flows from Investing Activities

    Add: Interest income received 0 0

    Less: Deferred Revenue Expenditure (Incurred on Advertising)6000


    FA purchased (Industrial Sewing Machine)(3A) 4000
    FA purchased (Other tools & Equipment) (3B) 3000 13000
    Net Cash Flow from Investing activities (B) -13000

    Cumulative Cash Flow (Ops & Investing activities) (AB) -7700

    Cash Flows from Financing Activities

    Add: Increase in NW (Owner's Equity) (0) 16000


    Availment of Bank Loan 0
    Issue of Debentures 0 16000

    Less: Buy back of shares / Payment of Dividend 0


    Repayment of Bank Loan 0
    Redemtion of Debentures 0 0
    Net Cash Flow from Financing activities (C) 16000

    Cum Cash Flow (Ops, Inv. & Fin) (A,B,C) = Cash / Bank bal. 8300

    Suresh G. Lalwani - Managerial Accounting Page 1 of 1

    You might also like