FASB Statement No. 95, "Statement of Cash Flows," mandates that companies include a statement of cash flows among their financial statements. The consolidated statement of cash flows is not prepared from the individual cash flow statements of the separate companies. Instead, the income statements and balance sheets are first brought together on the worksheet. The cash flows statement is then [...]
Here is a compilation of top three problems on cash flow statement with its relevant solution. Problem 1: Given below are Balance Sheets of Calcutta Jute Ltd. as at 31 -3-02 and 31-3-01. You are required to prepare Cash Flow Statement for the year 2001-02. Other Information: (1) Fixed assets costing Rs.1, 20,000, accumulated depreciation Rs.60, 000 were sold for [...]
In this article we will discuss about the preparation of cash flow statement, explained with the help of suitable illustrations. The Cash Flow Statement should report cash flows during the period classified by operating, Investing and Financing Activities. An enterprise presents its cash flows from operating, investing and financing activities in a manner which is most appropriate to its business. [...]