final presentation of cash flow
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8/8/2019 Final Presentation of Cash Flow
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PRESENTATION ON CASH FLOWPRESENTATION ON CASH FLOWSTATEMENT ANALYSISSTATEMENT ANALYSIS
PRESENTED TO
Prof. Bhavik Panchasara
PRESENTED BY
TORNADO Group
GROUP MEMBERS
1. Nisha Gondaliya
2. Janvi Badiyani
3. Megha Bavishi
4. HardikBhadeshiya
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INTRODUCTIONINTRODUCTION
CashCash includesincludes notnot onlyonly currencycurrency onon handhandbutbut alsoalso demanddemand depositsdeposits withwith BanksBanksoror otherother FinancialFinancial InstitutionInstitution. .
AllAll BusinessBusiness transactiontransaction ultimatelyultimately resultresultintointo cashcash InIn flowflow oror CashCash outout flowflow
InIn orderorder toto understandunderstand conceptconcept of of CashCashFlowFlow StatementStatement we we areare requiredrequired to toclearclear thethe fundamentalfundamental of of suchsuch aastatement,statement,
Cash Budget
Cash Flow Statement
8/8/2019 Final Presentation of Cash Flow
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DEFINATIONDEFINATION
CashCash FlowsFlows areare InIn FlowsFlows andandOutOut FlowFlow of of CashCash andand CashCashEquivalentsEquivalents. . ItIt meansmeans thethemovementmovement of of cashcash intointo thetheOrganisationOrganisation andand movementmovement of of cashcash outout of of thethe OrganisationOrganisation. .
8/8/2019 Final Presentation of Cash Flow
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DATA REQUIRED FOR DATA REQUIRED FOR PREPARATION OF CASH FLOWPREPARATION OF CASH FLOW
STATEMENTSTATEMENT
Comparative Balance Sheets.(i.e. the data of current yearas well as of previous year).
Profit & Loss Account.
Additional Data( i.e. Adjustment )
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Efficient Cash Management
Useful for Financial Management
Information about Cash Receipts andCash payments
Useful for Internal Controls
Ease in obtaining Funds
USES OF CASH FLOWUSES OF CASH FLOW
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LIMITATION OF CASH FLOWLIMITATION OF CASH FLOW
Misleading inter industrycomparision
Misleading inter Firm ComparisionMisleading comparision over aperiod of TimeInfluenced by changes inManagement policiesProfitability can not be measuredMismatch with income statement
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CLASSIFICATION OFCLASSIFICATION OFCASHFLOWSCASHFLOWS
(1) Cashflows from operating activity
(2) Cashflows from investing activity
(3) Cashflows from financing activity
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CASHFLOWS FROM OPERATINGCASHFLOWS FROM OPERATINGACTIVITIESACTIVITIES
Sale of goods
Rendering of services.
Other Revenue like royalties & fees.
Payments to suppliers for goods
Payment to employees
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CASHFLOWS FROM INVESTINGCASHFLOWS FROM INVESTINGACTIVITIESACTIVITIES
Cash payments to acquire fixed assets
Cash receipts from disposal of fixedassets
Cash payments to acquire share & warrants of other enterprises
Cash receipts from disposal of shares & warrants of other enterprises
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Cash advances & loans made tothird parties
Cash receipts from therepayments of advances and loansmade to third parties.
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CASH FLOWS FROMCASH FLOWS FROMFINANCING ACTIVITIESFINANCING ACTIVITIESCash proceeds from issuing Shares
Cash proceeds from issuing Debentures
Redemption of Debentures, Bonds etc
Cash payment to redeem preference
sharePayment of dividend
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ASCERTAINMENT OF CASH FROMASCERTAINMENT OF CASH FROMOPERATIONSOPERATIONS
ADD : IN PROFIT BEFORE TAXIncrease in Current Liabilities
Decrease in Current Assets
Less : FROM PROFIT BEFORE TAXIncrease in Current AssetsDecrease in Current Liabilities