Cash Flow Statement Analysis
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Cash Flow Statement Analysis



This material is a part of our PGPSE programe. Our programme is available for any student after class 12th / graduation. AFTERSCHO☺OL conducts PGPSE, which is available free to all online students. ...

This material is a part of our PGPSE programe. Our programme is available for any student after class 12th / graduation. AFTERSCHO☺OL conducts PGPSE, which is available free to all online students. There are no charges. PGPSE is a very rigorous programme, designed to give a comprehensive training in social entrepreneurship / spiritual entrepreneurship. This programme is aimed at those persons, who want to ultimately set up their own business enterprises which can benefit society substantially. PGPSE is a unique programme, as it combines industry consultancy, business solutions and case studies in addition to spirituality and social concerns. You can read the details at or at



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Cash Flow Statement Analysis Cash Flow Statement Analysis Presentation Transcript

  • Cash flow statement analysis AFTERSCHO ☺ OL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
  • Cash flow statement analysis Dr. T.K. Jain. AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email_address] , AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
  • What is cash?
    • Cash or bank balance.
  • Methods of cash flow analysis?
    • 1. direct method
    • 2. indirect method
  • Direct method
    • Here you have to take each item individually and prepare cash flow statement to show the net impact and identify the flow of cash.
  • Indirect method….
    • Take profit from P & L account and adjust it for non-cash items.
  • Three componenents of cash flow statement…
    • Cash from operations
    • Cash from financing
    • Cash from investing
  • Cash from operations…
    • Indirect method :
    • Profit
    • Add + all non cash expenses / provisions etc.
    • Less = all non cash income etc.
  • Cash from financing
    • If equity, debt, etc. increased, that means, there is more cash from financing
    • If equity, debt etc. decreased, that means there is application of cash.
  • Cash from investing….
    • If fixed assets and investments increased, it means, there is application of cash
    • If fixed assets & investments reduced, it means there is source cash and so cash from investing should increase.
  • What to add to profit (indirect method)?
    • Depreciation
    • Loss on sale of fixed assets
    • Amortisation of intangible assets
    • Impairment
    • Bad debt
    • Interest (it will go to cash from investing or cash fro financing acticity)
    • (all other non – cash expenses/ provisions).
  • What to deduct from profit (indirect method)
    • Profit on sale of fixed assets
  • Example:
    • Profit : 5000
    • (after deducting salary 1000, purchase 15000, depreciation 1000, goodwill written off 1000, rent 1000, wages 5000)
    • Solution:
    • Cash from operations (indirect method):
    • 5000 + 1000 (dep) + 1000 (goodwill)
    • = 7000 answer.
    • PGPSE - World’s most comprehensive programme on social entrepreneurship – after class 12 th
    • Flexible – fast changing to meet the requirements
    • Admission open throughout the year
    • Complete support from beginning to the end – from idea generation to making the project viable.
  • Branches of AFTERSCHO☺OL
    • PGPSE programme is open all over the world as free online programme.
    • Those who complete PSPSE have the freedom to start branches of AFTERSCHO☺OL
    • A few branches have already started - one such branch is at KOTA (Rajasthan).
  • Workshop on social entrepreneurship
    • We conduct workshop on social entrepreneurship – all over India and out of India also - in school, college, club, association or any such place - just send us a call and we will come to conduct the workshop on social entrepreeurship.
    • These workshops are great moments of learning, sharing, and commitments.
    • AFTERSCHO☺OL is absolutely free programme available online – any person can join it. The programme has four components :
    • 1. case studies – writing and analysing – using latest tools of management
    • 2. articles / reports writing & presentation of them in conferences / seminars
    • 3. Study material / books / ebooks / audio / audio visual material to support the study
    • 4. business plan preparation and presentations of those plans in conferences / seminars
  • 100% placement / entrepreneurship
    • AFTERSCHO☺OL has the record of 100% placement / entrepreneurship till date
    • Be assured of a bright career – if you join AFTERSCHO☺OL
  • Pursue professional courses along with PGPSE
    • AFTERSCHO☺OL permits you to pursue distance education based professional / vocational courses and gives you support for that also. Many students are doing CA / CS/ ICWA / CMA / FRM / CFP / CFA and other courses along with PGPSE.
    • Come and join AFTERSCHO☺OL