Professional Documents
Culture Documents
Statement of Changes in Financial Position: Cash Flow Statement
Statement of Changes in Financial Position: Cash Flow Statement
Operating Activities
Investing Activities
Financing Activities
Order of Presentation:
Direct Method
1. Operating activities.
Indirect Method
2. Investing activities.
3.Financing activities.
Three Sources of Information:
1. Comparative balance sheets
3. Additional information
Cash Flow from Operating Activities : Direct Method
XXX
Cash Payment for :
Purchases XXX
Payments to and for employees XXX
Operating Expenses
Interest Payments XXX
Direct Taxes XXX
XXX
Paid
XXX
Cash Flow from Operating Activities : Indirect
Method
Cash Flow from Operating Activities Amount Amount
(Rs.) (Rs.)
Net Profit before Tax xxx
Adjustment for :
Depreciation
xxx
Loss on Sale of Fixed Assets
Loss on revaluation
Operating Profit before xxx xxx
Working Capital Changes
xxx
Adjustment* for :
Trade and other Receivables xxx
Inventories or Stocks
Trade Payments or (Creditors xxx
and B/P) xxx
Cash Generated from xxx
Operations
xxx
Interest Paid
Taxes Paid xxx
Net Cash xxx
Preparing the Statement of
Cash Flows