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CASH FLOW STATEMENT

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CASH FLOW STATEMENT

Cash Flow Management

Classification of Cash Flows

(payments for expenses)

Operating

Increases in Cash Decreases in Cash

(receipts from sales of noncurrent assets)

Investing

(receipts from issuing equity and debt securities)

Financing

(payments for acquiring noncurrent assets)

Investing

Reporting Cash Flows

(receipts from revenues)

Operating

(payments for treasury stock, dividends, and redemption of debt

securities)

Financing

Cash flow statement v/s income statement

Cash Flow TemplateCash flows from operating activities    Net income   XXXAdjustments for:    Depreciation on machinery XXX  Provision for loss on account receivables XXX  Gain on sale of fixed asset (XXX)      XXXIncrease in trade receivables (XXX)  Foreign exchange XXX  Dividend received (XXX)      XXXCash generated from operating activities (A)   XXX     Cash flows from investing activities    Purchase of fixed asset (XXX)  Sale of investment XXX  Net cash from investing activities (B)   (XXX)     Cash flows from financing activities    Proceeds from issue of share capital XXX  Proceeds from long term borrowings XXX  Interest paid (XXX)  Net cash from financing activities (C)   XXX

   Net increase in cash and cash equivalents(A+B+C)   XXXCash and cash equivalents at beginning of the period   XXXCash and cash equivalents at end of the period   XXX

Direct and indirect cash flows

Statement of Cash flows- Indirect method

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