Accounting

1. Statement of Changes in Financial
Position :Cash FlowStatement

2. The cash flow statement provides
information about:
• Cash Receipts (cash inflows)
• Uses of Cash (cash outflows)
• During a Period of Time
Inflows and outflows are reported for:
• Operating activities
• Investing activities
• Financing activities
The Cash Flow Statement

3. Components of Cash Flow
Statement
Cash effects the transaction on Net Income

4. Components of Cash Flow Statement
These are cash flows related to the acquisition or
sale of Non-Current Assets.

5. Components of Cash Flow Statement
These are cash flows related to the owner’s
equity and borrowings.

6. D. COMPLETING THE CFS
The following transactions are taken from the cash ledger of ABM Consultancy
Services. Classify the transactions as to operating, investing or financing activity.

7. Steps in preparing Cash Flow Statement:
1. Write the heading at the
center of the page.

8. Steps in preparing Cash Flow Statement:
2. List all operating activities from
inflow to outflow. Outflow amounts
should be written with parenthesis to
indicate that these amounts are
negative to the account. The
difference between inflow and outflow
is called Net Cash Flow
from Operating Activities.

9. Steps in preparing Cash Flow Statement:

10. Steps in preparing Cash Flow Statement:
3. List all investing activities from inflow
to outflow. Outflow amounts should be
written with parenthesis to indicate that
these amounts are negative to the
account. The difference between inflow
and outflow is called Net Cash Flow from
Investing Activities. From the analysis of
the transactions of ABM Consultancy,
here are the investing activities:

11. Steps in preparing Cash Flow Statement:

12. Steps in preparing Cash Flow Statement:
4. List all financing activities from inflow
to outflow. Outflow amounts should be
written with parenthesis to indicate that
these amounts are negative to the
account. The difference between inflow
and outflow is called Net Cash Flow
from Financing Activities. From the
analysis of the transactions of ABM
Consultancy, here are the financing
activities:

13. Steps in preparing Cash Flow Statement:

14. Steps in preparing Cash Flow Statement:
5. Sum all the net amounts from each
activity. The result will show the net
increase (if positive), or decrease (if
negative) in cash. From the analysis
of the transactions of ABM
Consultancy, get the sum of
P19,100, (P9,100), and P10,000,
respectively. The Net Increase in cash
is P20,000. See figure below.

16. 6. Add the beginning cash balance to get
the cash balance for the end of the month.
There is no beginning cash balance given,
so we can already determine the ending
cash balance for ABM Consultancy,
P20,000.

19. FINANCING
-
+
INVESTING
FINANCING -
OPERATING +
OPERATING -
OPERATING -
OPERATING -
OPERATING -
FINANCING -
OPERATING -
OPERATING -

20. The following data are taken from the
records of AbyGala Events. Ms.
Abegail has a beginning cash balance
on January 1, 2020, of P56,908.
Compute for net cash flow from:
1. Operating activity
2. Investing activity
3. Financing activity
4. Ending cash balance (Dec.
31,2019)