CASH FLOW ANALYSIS
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CASH FLOW ANALYSIS
Statement of Changes in Financial Position:
1. Cash Basis (Cash Flow)- Changes in cash position
between the beginning and end of the financial
period.
2. Working Capital Basis- (Funds Flow)- Changes in
working capital position between the beginning and
end of the financial period.
CASH FLOW ANALYSIS
Cash Flow means the amount of cash flowing in and out of
the company.
In order to keep a record of the cash flow, organizations
prepare a cash flow statement. A cash flow statement
provides cash-based information, whereas an income
statement provides accrual-based information.
Types of Cash Flows-
1. Operating cash flow- The cash generated from the day-to-
day operating activities of the company.
2. Investing cash flow- Cash generated from the sale and
purchase of investments.
3. Financing cash flow- Comes from conducting financing
activities such as repaying capital etc.
Cash Flow Analysis
Cash Flow From Operating Activities
Cash Flow From Operating Activities
1. OCF = (revenue - operating expenses) + depreciation - income taxes -
change in working capital.
2. OCF = net income + depreciation - change in working capital.
3. OCF = net income - changes in working capital + non-cash expenses.
Cash Flow From Financing Activities
Cash Flow from financing activities is the
net amount of funding a company
generates in a given period.
Finance activities include the issuance
and repayment of equity, payment of
dividends, issuance and repayment of
the debt, and capital lease obligations.
Cash Flow From Investing Activities
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