Cashflow statement preparation guide

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A Cash Flow Preparation Guide based on live experience

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Cashflow statement preparation guide

  1. 1. Cash flow StatementPreparation GuideusingIndirect Method<br />By <br />http://www.budgetingforecastingprocess.com<br />
  2. 2. Cash flow Statement Preparation Guide by http://budgetingforecastingprocess.com/<br />Cash Flow Statement Template<br />Net Income<br />Reconciliation to net cash provided (used) by operations<br />Cash provided (used) by Operations<br />Cash provided (used) by Investing Activities<br />Cash provided (used) by Financing Activities<br />Cash provided (used) by Financing Activities<br />Net increase (decrease) in cash and equivalents<br />Cash and equivalents, beginning of the year<br />Cash and equivalents, end of the year<br />
  3. 3. Cash flow Statement Preparation Guide by http://budgetingforecastingprocess.com/<br />Reconciliation to net cash provided (used) by operations<br />General Rules:<br />Deduct increases in noncash current assets.<br />Add decreases in noncash current assets.<br />Deduct decreases in current liabilities.<br />Add loss (or deduct gain) from sale of fixed assets.<br />Add loss (or deduct gain) on extinguishment of debts.<br />
  4. 4. Cash flow Statement Preparation Guide by http://budgetingforecastingprocess.com/<br />Net Income<br />Reconciliation to net cash provided (used) by operations:<br />Income charges not affecting cash.<br /> Example: Depreciation<br />Changes in working capital.<br /> Example: <br />Inventories <br />Other current assets <br /> Account receivables<br />Account payables<br />Accrued liabilities<br />Income taxes, etc<br />Cash provided (used) by Operations<br />
  5. 5. Cash flow Statement Preparation Guide by http://budgetingforecastingprocess.com/<br />Cash provided (used) by Investing Activities<br />Example:<br />Less: Additions to property, plant and equipment.<br />Add: Disposal of property, plant and equipment.<br />Less: Increase in other assets<br />Less: Decrease in other liabilities <br />
  6. 6. Cash flow Statement Preparation Guide by http://budgetingforecastingprocess.com/<br />Cash provided (used) by Financing Activities<br />Example:<br />Add: Additions to long term debt.<br />Less: Reduction in long term debt.<br />Add: Increase in note payables.<br />Add: Proceed from exercise of options.<br />Less: Dividends paid.<br />
  7. 7. Cash Flow Statement Templateby http://budgetingforecastingprocess.com/<br />Net Income<br />Reconciliation to net cash provided (used) by operations<br />Cash provided (used) by Operations<br />Cash provided (used) by Investing Activities<br />Cash provided (used) by Financing Activities<br />Cash provided (used) by Financing Activities<br />Net increase (decrease) in cash and equivalents<br />Cash and equivalents, beginning of the year<br />Cash and equivalents, end of the year<br />
  8. 8. By <br />http://www.budgetingforecastingprocess.com<br />The End<br />

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