Statement of Cash

Flow
Module 5
OBJECTIVES:
Appreciate the significance of the information in the SCF
Classify cash flows into operating, investing and financing
activities
Appraise transaction recorded in the T-account
STATEMENT OF CASH FLOW:

Is a financial statement that provides information about

the causes of a change in a company’s cash balance from
the beginning to the end of specific period (Ma. Elenita
Balatbat Cabrera, FABM2, p328).
SECTIONS OF THE STATEMENT OF CASH
FLOW:
OPERATING ACTIVITIES – these are inflows or outflows of cash generated from
the main operations of the business.
Inflows:
- Collection from customers for sales or service rendered
- Other cash receipts from normal operation of the business
Outflows:
- Cash payments to suppliers and other related transactions
- Payment for other expenses or spending
SECTIONS OF THE STATEMENT OF CASH
FLOW:
INVESTING ACTIVITIES – these are the inflows or outflows of cash from the
purchase of long-term assets and other investments outside the company.
Inflows:
- Sale of other plant assets
- Receipt of loans from other organizations
Outflows:
- Purchase of Non-current assets
- Loans extended to other parties
SECTIONS OF THE STATEMENT OF CASH
FLOW:
FINANCING ACTIVITIES – these are inflows or outflows of cash from owners or
investors making additional investment thru borrowings or investment or withdrawals
by the owners.
Inflows:
- Cash from short and long term borrowings
- Investment of owners
Outflows:
- Cash Payment to short and long-term borrowings
- Owner’s withdrawals
PROFORMA OF THE STATEMENT OF CASH
FLOW: