Your SlideShare is downloading. ×
Cash Flow Statement CMD
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Cash Flow Statement CMD

603
views

Published on


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
603
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
19
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The Cash Flow Statement Higher/Int 2 Business Management 2009-2010
  • 2. The Cash Flow Statement
    • A Cash Flow Statement is produced by an organisation in addition to the Trading Profit and Loss Account and Balance Sheet .
    • This statement shows movements of cash over the past year .
  • 3. Cash Management
    • Poor cash management is the second most popular reason for business failure .
    • The concept of cash flow is centered around liquidity - the ability to maintain sufficient liquid assets to meet day to day commitments .
  • 4. Cash Management
    • Most businesses fail , because they run out of cash and not because they lack success or profits .
    • A Cash Flow Statement provides an easy means by which to track the movements of cash .
  • 5. Terms
    • Cash Inflow:
      • a movement of cash into the business e.g. cash sales.
    • Cash Outflow:
      • a movement of cash out of the business e.g. cash purchases.
  • 6. Cash Movements
    • Cash Inflows:
      • Decrease in debtors.
      • Increase in creditors.
      • Loan received.
      • New capital invested.
      • Profits.
      • Sale of a fixed asset.
      • Sale of stock.
    • Cash Outflows:
      • Decrease in creditors.
      • Dividend payment.
      • Drawings.
      • Increase in debtors.
      • Loan repaid.
      • Losses.
      • Purchase of a fixed asset.
      • Purchase of stock.
  • 7. The Cash Flow Cycle CASH Buy Resources Use Resources to make Goods and Services Sell Goods and Services to Generate Cash

×