Cash Flow Statement

IMPORTANT POINTS
1. Cash inflow xxx
Cash outflow (xxx)
2. Rules
a. Assets increased (xxx)
Assets decreased xxx
b. Capital/Liabilities increased xxx
Capital/Liabilities decreased (xxx)
Three Business Activities

Business Activities

Operating Investing Financing

activities activities activities
a. Operating activities:
• Cash sales and collection from debtors xxx
• Cash purchase and payment to creditors (xxx)
• Payment to employees and other operating expenses (xxx)
• Payment of interest (xxx)
• Payment of tax (xxx)
• Cash flow from current assets except cash and bankxxx or
(xxx)
• Cash flow from current liabilities xxx or (xxx)
b. Investing activities: Long term assets related
(i.e. fixed assets and long term investment)
Purchase of long term assets (xxx)
Sales of long term assets xxx
c. Financing activities:
Long term liabilities and capital related
Issue of shares and debentures xxx
Redemption of shares and debentures (xxx) Dividend paid
(xxx)
Premium on redemption of debentures (xxx)
Borrowing of long term loan/bank loan xxx
Repayment of long term loan/bank loan (xxx)
 Cash Flow Statement
Direct Method
PARTICULARS AMOUNT (Rs.) AMOUNT (Rs.)