SlideShare a Scribd company logo
CASH FLOW ANALYSIS
company
SMC(optional)
Direct method
Indirect
method
Non-SMC
(compulsory)
Indirect
method
 Cash comprises cash on hand and demand deposits
with banks.
 5.2 Cash equivalents are short term, highly liquid
investments that are readily convertible into known
amounts of cash and which are subject to an
insignificant risk of changes in value.
 5.3 Cash flows are inflows and outflows of cash and
cash equivalents.
 5.4 Operating activities are the principal revenue-
producing activities of the enterprise and other
activities that are not investing or financing activities.
 5.5 Investing activities are the acquisition and
disposal of long-term assets and other investments not
included in cash equivalents.
 5.6 Financing activities are activities that result in
changes in the size and composition of the owners’
capital (including preference share capital in the case of
a company) and borrowings of the enterprise.
MEANING AND DEFINITION
Cash flow statement is a statement which indicates
sources of cash inflows and transaction of cash
outflows of a firm during an accounting period. The
transactions which generate cash inflows are
known as sources of cash and activities which
cause cash outflows are known as uses of cash. It
is appropriately termed as “where got where gone
statement”.
CASH FLOW STATEMENT
The Institute of Chartered Accountants of
India(ICAI) issued the Accounting Standard(AS-3
(revised)) relating to the preparation of cash flow
statement(CFS) for accounting periods
commencing on or after April 1,2004 for enterprises
(i)which have either turnover of more than 50 crores
and(ii)the share is listed in stock exchange.
OBJECTIVE
 Useful in financial planning
 Helpful in formulating business policies
 Assistance in preparation of cash budget
 Helpful in comparison with standard of actual
 Used for assessment of cash flow from various
activities
 It highlights cash flow from recurring activities
 Cash flow statement is an important financial tool
 Useful for financial institutions
IMPORTANCE
 Evaluation of cash forecasting
 Easy financing decision making
 Help in investment decision
 Proper allocation of available cash resources
 Explains the deviations from earnings.
LIMITATIONS
 Not a substitute of income statement
 Manipulation of cash position possible
 Not a substitute of fund flow statement
 Based on historical cost principle
 No adherence to basic accounting principles
Cash
flow
Direct
method
Indirect
method
DIRECT METHOD
 Cash flows from operating activities
Cash receipts from customers
Cash paid to suppliers and employees (..........)
Cash generated from operations
Income taxes paid (......)
Cash flow before extraordinary item
Proceeds from earthquake disaster settlement
Net cash from operating activities
 Cash flows from investing activities
Purchase of fixed assets (.....)
Proceeds from sale of equipment
Interest received
Dividends received
Net cash from investing activities
 Cash flows from financing activities
Proceeds from issuance of share capital
Proceeds from long-term borrowings
Repayment of long-term borrowings (....)
Interest paid (....)
Dividends paid (........)
Net cash used in financing activities (.......)
Net increase in cash and cash equivalents
Cash & cash equivalents at beginning of period
Cash and cash equivalents at end of period
INDIRECT METHOD
Cash flow from operating activities
Net profit before tax and extraordinary items
Adjustment for:
deprecation
Foreign exchange
Loss on sale of fixed assets
Gain on sales of fixed assets
Interest paid
Interest received
Dividend received
Operating profit before working capital change
Add: decrease in current assets
increase in current liability
Less: decrease in current liability
increase in current assets
Cash generated from operating activities
Income tax paid
Cash flow before extraordinary items
(+)or (-) Extraordinary items
Net cash from operating activities
Cash flow from investing activities
Purchase of fixed assets
Sale of fixed assets
Purchase of investment
Sale of investment
Interest received
Dividend received
Net cash from investing activities
(..............)
(..............)
(................)
(...............)
(............)
(..........)
..............
..............
Cash flow from financing activities:
Proceeds from issue of share capital
Proceeds from long term borrowings
Repayment o long term borrowings
Interest paid
Dividend paid
Net cash from financing activities
Net increase (or decrease) in cash or cash equivalent
Cash and cash equivalent at the beginning of the period
Cash and cash equivalent at the end of the period
(.......)
(.......)
(.........)

More Related Content

What's hot

Working capital
Working capitalWorking capital
Working capital
Suresh Thengumpallil
 
cash flow statement
cash flow statementcash flow statement
cash flow statement
bhanu vashishtha
 
Working capital ppt
Working capital pptWorking capital ppt
Working capital ppt
CA Deepak Sharma
 
Working capital ppt
Working capital  pptWorking capital  ppt
Working capital ppt
Shivaji Shinde
 
INVESTMENT DECISION
INVESTMENT DECISION INVESTMENT DECISION
INVESTMENT DECISION
Mohammed Jasir PV
 
Overheads
OverheadsOverheads
Fund flow statement
Fund flow statementFund flow statement
Fund flow statement
ITM-Business School
 
Cash forecasting
Cash forecastingCash forecasting
Cash forecasting
Fatima Khan
 
Dividend policy
Dividend policyDividend policy
Dividend policy
Pooja Narwani
 
Financial reporting
Financial reportingFinancial reporting
Financial reporting
SHUBHAM TANEJA
 
Dividend theories
Dividend theoriesDividend theories
Dividend theories
N A M COLLEGE KALLIKKANDY
 
Working capital management ppt
Working capital management pptWorking capital management ppt
Working capital management ppt
Shanu Aggarwal
 
The Discounted Cash Flow Valuation.pptx
The Discounted Cash Flow Valuation.pptxThe Discounted Cash Flow Valuation.pptx
The Discounted Cash Flow Valuation.pptx
asde13
 
Cost of capital
Cost of capitalCost of capital
Cost of capital
Visakhapatnam
 
Capital structure
Capital structureCapital structure
Capital structure
Bhawna Pandwar
 
Objective and Scope of financial management B.com, M.com
Objective and Scope of financial management B.com, M.comObjective and Scope of financial management B.com, M.com
Objective and Scope of financial management B.com, M.com
Dr. Toran Lal Verma
 
Cash Flow Statement PPT
Cash Flow Statement PPTCash Flow Statement PPT
Leverage (Operating, financial & combined leverage)
Leverage (Operating, financial & combined leverage)Leverage (Operating, financial & combined leverage)
Leverage (Operating, financial & combined leverage)
Yamini Kahaliya
 
Fund flow statement
Fund flow statementFund flow statement
Fund flow statement
desire120
 
Financial reporting presentation_1
Financial reporting presentation_1Financial reporting presentation_1
Financial reporting presentation_1
Raj Kumar Singh
 

What's hot (20)

Working capital
Working capitalWorking capital
Working capital
 
cash flow statement
cash flow statementcash flow statement
cash flow statement
 
Working capital ppt
Working capital pptWorking capital ppt
Working capital ppt
 
Working capital ppt
Working capital  pptWorking capital  ppt
Working capital ppt
 
INVESTMENT DECISION
INVESTMENT DECISION INVESTMENT DECISION
INVESTMENT DECISION
 
Overheads
OverheadsOverheads
Overheads
 
Fund flow statement
Fund flow statementFund flow statement
Fund flow statement
 
Cash forecasting
Cash forecastingCash forecasting
Cash forecasting
 
Dividend policy
Dividend policyDividend policy
Dividend policy
 
Financial reporting
Financial reportingFinancial reporting
Financial reporting
 
Dividend theories
Dividend theoriesDividend theories
Dividend theories
 
Working capital management ppt
Working capital management pptWorking capital management ppt
Working capital management ppt
 
The Discounted Cash Flow Valuation.pptx
The Discounted Cash Flow Valuation.pptxThe Discounted Cash Flow Valuation.pptx
The Discounted Cash Flow Valuation.pptx
 
Cost of capital
Cost of capitalCost of capital
Cost of capital
 
Capital structure
Capital structureCapital structure
Capital structure
 
Objective and Scope of financial management B.com, M.com
Objective and Scope of financial management B.com, M.comObjective and Scope of financial management B.com, M.com
Objective and Scope of financial management B.com, M.com
 
Cash Flow Statement PPT
Cash Flow Statement PPTCash Flow Statement PPT
Cash Flow Statement PPT
 
Leverage (Operating, financial & combined leverage)
Leverage (Operating, financial & combined leverage)Leverage (Operating, financial & combined leverage)
Leverage (Operating, financial & combined leverage)
 
Fund flow statement
Fund flow statementFund flow statement
Fund flow statement
 
Financial reporting presentation_1
Financial reporting presentation_1Financial reporting presentation_1
Financial reporting presentation_1
 

Similar to Cash flow analysis

ACCOUNTANCY.pptx
ACCOUNTANCY.pptxACCOUNTANCY.pptx
ACCOUNTANCY.pptx
BipulKumar778126
 
AFA Unit-5.ppt
AFA Unit-5.pptAFA Unit-5.ppt
AFA Unit-5.ppt
SwatiKunwar3
 
Cash flow statement session 1
Cash flow statement session 1Cash flow statement session 1
Cash flow statement session 1
Amit Kumar Singh
 
Cash flow statement
Cash flow statementCash flow statement
Cash flow statement
Samuel Maniraj
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow Statement
Hitesh Baid
 
Accounting Standard-3 Cash Flow Statement by Nithin Raj
Accounting Standard-3 Cash Flow Statement by Nithin RajAccounting Standard-3 Cash Flow Statement by Nithin Raj
Accounting Standard-3 Cash Flow Statement by Nithin Raj
Chinnu Raj
 
cash flow analysis
cash flow analysiscash flow analysis
cash flow analysis
Kanika Gupta
 
Analyzing Cash Flows Class 12th CBSE.pptx
Analyzing Cash Flows Class 12th CBSE.pptxAnalyzing Cash Flows Class 12th CBSE.pptx
Analyzing Cash Flows Class 12th CBSE.pptx
lostboyjourney7781
 
Chapter 11 statements of cash flows clc
Chapter 11 statements of cash flows clcChapter 11 statements of cash flows clc
Chapter 11 statements of cash flows clc
LyLy Tran
 
B.COM 7TH.ppt
B.COM 7TH.pptB.COM 7TH.ppt
B.COM 7TH.ppt
MIshtiaq6
 
cash-flow-statement-.pptbankdocuments-.ppt
cash-flow-statement-.pptbankdocuments-.pptcash-flow-statement-.pptbankdocuments-.ppt
cash-flow-statement-.pptbankdocuments-.ppt
jeannmontejo1
 
14 Statement Of Cash Flows
14   Statement Of Cash Flows14   Statement Of Cash Flows
14 Statement Of Cash Flows
Yasir Hussain Turi
 
Cash flow statement
Cash flow statementCash flow statement
Cash flow statement
Ameen San
 
cash-flow-statement-1220159910575245-9 (1).pptx
cash-flow-statement-1220159910575245-9 (1).pptxcash-flow-statement-1220159910575245-9 (1).pptx
cash-flow-statement-1220159910575245-9 (1).pptx
ArielTupaz
 
Accounting Cashflow
Accounting CashflowAccounting Cashflow
Accounting Cashflow
Brijesh Kakdiya
 
Cash flow statement yef
Cash flow statement yefCash flow statement yef
Cash flow statement yef
Harinisrinivasamoort1
 
Cash flows kuku
Cash flows kukuCash flows kuku
Cash flows kuku
kukudede
 
Cash flow statement copy one
Cash flow statement copy oneCash flow statement copy one
Cash flow statement copy one
Margreat ANNE
 
Session08-Statement of Cash Flows.pptx
Session08-Statement of Cash Flows.pptxSession08-Statement of Cash Flows.pptx
Session08-Statement of Cash Flows.pptx
lamslam
 
Classification of cash flows
Classification of cash flowsClassification of cash flows
Classification of cash flows
Babasab Patil
 

Similar to Cash flow analysis (20)

ACCOUNTANCY.pptx
ACCOUNTANCY.pptxACCOUNTANCY.pptx
ACCOUNTANCY.pptx
 
AFA Unit-5.ppt
AFA Unit-5.pptAFA Unit-5.ppt
AFA Unit-5.ppt
 
Cash flow statement session 1
Cash flow statement session 1Cash flow statement session 1
Cash flow statement session 1
 
Cash flow statement
Cash flow statementCash flow statement
Cash flow statement
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow Statement
 
Accounting Standard-3 Cash Flow Statement by Nithin Raj
Accounting Standard-3 Cash Flow Statement by Nithin RajAccounting Standard-3 Cash Flow Statement by Nithin Raj
Accounting Standard-3 Cash Flow Statement by Nithin Raj
 
cash flow analysis
cash flow analysiscash flow analysis
cash flow analysis
 
Analyzing Cash Flows Class 12th CBSE.pptx
Analyzing Cash Flows Class 12th CBSE.pptxAnalyzing Cash Flows Class 12th CBSE.pptx
Analyzing Cash Flows Class 12th CBSE.pptx
 
Chapter 11 statements of cash flows clc
Chapter 11 statements of cash flows clcChapter 11 statements of cash flows clc
Chapter 11 statements of cash flows clc
 
B.COM 7TH.ppt
B.COM 7TH.pptB.COM 7TH.ppt
B.COM 7TH.ppt
 
cash-flow-statement-.pptbankdocuments-.ppt
cash-flow-statement-.pptbankdocuments-.pptcash-flow-statement-.pptbankdocuments-.ppt
cash-flow-statement-.pptbankdocuments-.ppt
 
14 Statement Of Cash Flows
14   Statement Of Cash Flows14   Statement Of Cash Flows
14 Statement Of Cash Flows
 
Cash flow statement
Cash flow statementCash flow statement
Cash flow statement
 
cash-flow-statement-1220159910575245-9 (1).pptx
cash-flow-statement-1220159910575245-9 (1).pptxcash-flow-statement-1220159910575245-9 (1).pptx
cash-flow-statement-1220159910575245-9 (1).pptx
 
Accounting Cashflow
Accounting CashflowAccounting Cashflow
Accounting Cashflow
 
Cash flow statement yef
Cash flow statement yefCash flow statement yef
Cash flow statement yef
 
Cash flows kuku
Cash flows kukuCash flows kuku
Cash flows kuku
 
Cash flow statement copy one
Cash flow statement copy oneCash flow statement copy one
Cash flow statement copy one
 
Session08-Statement of Cash Flows.pptx
Session08-Statement of Cash Flows.pptxSession08-Statement of Cash Flows.pptx
Session08-Statement of Cash Flows.pptx
 
Classification of cash flows
Classification of cash flowsClassification of cash flows
Classification of cash flows
 

More from chanchal bansal

Organisational change
Organisational changeOrganisational change
Organisational change
chanchal bansal
 
samsung
samsungsamsung
International HRM
International HRMInternational HRM
International HRM
chanchal bansal
 
Group development
Group developmentGroup development
Group development
chanchal bansal
 
Job design
Job designJob design
Job design
chanchal bansal
 
project on kurlon towards customer preception of choosing mattress
project on kurlon towards customer preception of choosing mattressproject on kurlon towards customer preception of choosing mattress
project on kurlon towards customer preception of choosing mattress
chanchal bansal
 
report presentation on abp power ltd on employees
 report presentation on abp power ltd on employees report presentation on abp power ltd on employees
report presentation on abp power ltd on employees
chanchal bansal
 
Satya nadella CEO OF Microsoft
Satya nadella  CEO  OF MicrosoftSatya nadella  CEO  OF Microsoft
Satya nadella CEO OF Microsoft
chanchal bansal
 
Yamaha
YamahaYamaha
presentation on samsung
presentation on samsungpresentation on samsung
presentation on samsung
chanchal bansal
 
Presentation on patanjali
Presentation on patanjaliPresentation on patanjali
Presentation on patanjali
chanchal bansal
 
Reliance jio
Reliance jio Reliance jio
Reliance jio
chanchal bansal
 
Micromax informatics ltd
Micromax  informatics ltdMicromax  informatics ltd
Micromax informatics ltd
chanchal bansal
 
report presentation on ABP Power ltd
report presentation on ABP Power ltdreport presentation on ABP Power ltd
report presentation on ABP Power ltd
chanchal bansal
 
maruti
marutimaruti
presentation on ITC
presentation on ITCpresentation on ITC
presentation on ITC
chanchal bansal
 
indian oil corporation ltd.
indian oil corporation ltd.indian oil corporation ltd.
indian oil corporation ltd.
chanchal bansal
 
haldiram
haldiramhaldiram
haldiram
chanchal bansal
 
BMW
 BMW BMW
bata
batabata

More from chanchal bansal (20)

Organisational change
Organisational changeOrganisational change
Organisational change
 
samsung
samsungsamsung
samsung
 
International HRM
International HRMInternational HRM
International HRM
 
Group development
Group developmentGroup development
Group development
 
Job design
Job designJob design
Job design
 
project on kurlon towards customer preception of choosing mattress
project on kurlon towards customer preception of choosing mattressproject on kurlon towards customer preception of choosing mattress
project on kurlon towards customer preception of choosing mattress
 
report presentation on abp power ltd on employees
 report presentation on abp power ltd on employees report presentation on abp power ltd on employees
report presentation on abp power ltd on employees
 
Satya nadella CEO OF Microsoft
Satya nadella  CEO  OF MicrosoftSatya nadella  CEO  OF Microsoft
Satya nadella CEO OF Microsoft
 
Yamaha
YamahaYamaha
Yamaha
 
presentation on samsung
presentation on samsungpresentation on samsung
presentation on samsung
 
Presentation on patanjali
Presentation on patanjaliPresentation on patanjali
Presentation on patanjali
 
Reliance jio
Reliance jio Reliance jio
Reliance jio
 
Micromax informatics ltd
Micromax  informatics ltdMicromax  informatics ltd
Micromax informatics ltd
 
report presentation on ABP Power ltd
report presentation on ABP Power ltdreport presentation on ABP Power ltd
report presentation on ABP Power ltd
 
maruti
marutimaruti
maruti
 
presentation on ITC
presentation on ITCpresentation on ITC
presentation on ITC
 
indian oil corporation ltd.
indian oil corporation ltd.indian oil corporation ltd.
indian oil corporation ltd.
 
haldiram
haldiramhaldiram
haldiram
 
BMW
 BMW BMW
BMW
 
bata
batabata
bata
 

Recently uploaded

How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
Celine George
 
How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17
Celine George
 
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxBeyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
EduSkills OECD
 
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
TechSoup
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
Nguyen Thanh Tu Collection
 
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
MysoreMuleSoftMeetup
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
siemaillard
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
Himanshu Rai
 
The basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptxThe basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptx
heathfieldcps1
 
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdfREASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
giancarloi8888
 
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
PECB
 
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
zuzanka
 
Benner "Expanding Pathways to Publishing Careers"
Benner "Expanding Pathways to Publishing Careers"Benner "Expanding Pathways to Publishing Careers"
Benner "Expanding Pathways to Publishing Careers"
National Information Standards Organization (NISO)
 
How to deliver Powerpoint Presentations.pptx
How to deliver Powerpoint  Presentations.pptxHow to deliver Powerpoint  Presentations.pptx
How to deliver Powerpoint Presentations.pptx
HajraNaeem15
 
Nutrition Inc FY 2024, 4 - Hour Training
Nutrition Inc FY 2024, 4 - Hour TrainingNutrition Inc FY 2024, 4 - Hour Training
Nutrition Inc FY 2024, 4 - Hour Training
melliereed
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
TechSoup
 
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
imrankhan141184
 
Lifelines of National Economy chapter for Class 10 STUDY MATERIAL PDF
Lifelines of National Economy chapter for Class 10 STUDY MATERIAL PDFLifelines of National Economy chapter for Class 10 STUDY MATERIAL PDF
Lifelines of National Economy chapter for Class 10 STUDY MATERIAL PDF
Vivekanand Anglo Vedic Academy
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
Krassimira Luka
 
Wound healing PPT
Wound healing PPTWound healing PPT
Wound healing PPT
Jyoti Chand
 

Recently uploaded (20)

How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
 
How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17
 
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxBeyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptx
 
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
 
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
 
The basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptxThe basics of sentences session 7pptx.pptx
The basics of sentences session 7pptx.pptx
 
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdfREASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
REASIGNACION 2024 UGEL CHUPACA 2024 UGEL CHUPACA.pdf
 
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
 
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
 
Benner "Expanding Pathways to Publishing Careers"
Benner "Expanding Pathways to Publishing Careers"Benner "Expanding Pathways to Publishing Careers"
Benner "Expanding Pathways to Publishing Careers"
 
How to deliver Powerpoint Presentations.pptx
How to deliver Powerpoint  Presentations.pptxHow to deliver Powerpoint  Presentations.pptx
How to deliver Powerpoint Presentations.pptx
 
Nutrition Inc FY 2024, 4 - Hour Training
Nutrition Inc FY 2024, 4 - Hour TrainingNutrition Inc FY 2024, 4 - Hour Training
Nutrition Inc FY 2024, 4 - Hour Training
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
 
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
 
Lifelines of National Economy chapter for Class 10 STUDY MATERIAL PDF
Lifelines of National Economy chapter for Class 10 STUDY MATERIAL PDFLifelines of National Economy chapter for Class 10 STUDY MATERIAL PDF
Lifelines of National Economy chapter for Class 10 STUDY MATERIAL PDF
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
 
Wound healing PPT
Wound healing PPTWound healing PPT
Wound healing PPT
 

Cash flow analysis

  • 3.  Cash comprises cash on hand and demand deposits with banks.  5.2 Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.  5.3 Cash flows are inflows and outflows of cash and cash equivalents.  5.4 Operating activities are the principal revenue- producing activities of the enterprise and other activities that are not investing or financing activities.  5.5 Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.  5.6 Financing activities are activities that result in changes in the size and composition of the owners’ capital (including preference share capital in the case of a company) and borrowings of the enterprise.
  • 4. MEANING AND DEFINITION Cash flow statement is a statement which indicates sources of cash inflows and transaction of cash outflows of a firm during an accounting period. The transactions which generate cash inflows are known as sources of cash and activities which cause cash outflows are known as uses of cash. It is appropriately termed as “where got where gone statement”.
  • 5. CASH FLOW STATEMENT The Institute of Chartered Accountants of India(ICAI) issued the Accounting Standard(AS-3 (revised)) relating to the preparation of cash flow statement(CFS) for accounting periods commencing on or after April 1,2004 for enterprises (i)which have either turnover of more than 50 crores and(ii)the share is listed in stock exchange.
  • 6. OBJECTIVE  Useful in financial planning  Helpful in formulating business policies  Assistance in preparation of cash budget  Helpful in comparison with standard of actual  Used for assessment of cash flow from various activities  It highlights cash flow from recurring activities  Cash flow statement is an important financial tool  Useful for financial institutions
  • 7. IMPORTANCE  Evaluation of cash forecasting  Easy financing decision making  Help in investment decision  Proper allocation of available cash resources  Explains the deviations from earnings.
  • 8. LIMITATIONS  Not a substitute of income statement  Manipulation of cash position possible  Not a substitute of fund flow statement  Based on historical cost principle  No adherence to basic accounting principles
  • 10.
  • 12.  Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees (..........) Cash generated from operations Income taxes paid (......) Cash flow before extraordinary item Proceeds from earthquake disaster settlement Net cash from operating activities  Cash flows from investing activities Purchase of fixed assets (.....) Proceeds from sale of equipment Interest received Dividends received Net cash from investing activities
  • 13.  Cash flows from financing activities Proceeds from issuance of share capital Proceeds from long-term borrowings Repayment of long-term borrowings (....) Interest paid (....) Dividends paid (........) Net cash used in financing activities (.......) Net increase in cash and cash equivalents Cash & cash equivalents at beginning of period Cash and cash equivalents at end of period
  • 15. Cash flow from operating activities Net profit before tax and extraordinary items Adjustment for: deprecation Foreign exchange Loss on sale of fixed assets Gain on sales of fixed assets Interest paid Interest received Dividend received Operating profit before working capital change Add: decrease in current assets increase in current liability Less: decrease in current liability increase in current assets Cash generated from operating activities Income tax paid Cash flow before extraordinary items (+)or (-) Extraordinary items Net cash from operating activities Cash flow from investing activities Purchase of fixed assets Sale of fixed assets Purchase of investment Sale of investment Interest received Dividend received Net cash from investing activities (..............) (..............) (................) (...............) (............) (..........) .............. ..............
  • 16. Cash flow from financing activities: Proceeds from issue of share capital Proceeds from long term borrowings Repayment o long term borrowings Interest paid Dividend paid Net cash from financing activities Net increase (or decrease) in cash or cash equivalent Cash and cash equivalent at the beginning of the period Cash and cash equivalent at the end of the period (.......) (.......) (.........)