How to Prepare a Cash Flow Statement: With Methods, Examples and Entries! Cash flow statement is prepared on the same lines as the funds flow statement, but strictly restricted to sources and uses of cash. Preparation of the statement is based on the opening and closing balance sheets, profit and loss account and other relevant information. Cash flow statement starts [...]
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 [...]
A cash flow statement aims to determine the effects of cash of different type of cash inflows and outflows. In this process, all cash flows are classified into three categories:- 1. Cash flows from Operating Activities 2. Cash flows from Investing Activities 3. Cash flows from Financing Activities. 1. Cash Flows from Operating Activities: The amount of cash flows arising [...]