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CFS Format

This document outlines the format of a cash flow statement prepared using the indirect method. It includes sections for cash flow from operating, investing and financing activities. The operating activities section shows how net profit is adjusted for non-cash expenses/incomes like depreciation, and changes in working capital, to calculate net cash from operations. The investing section includes cash flows from purchases/sales of fixed assets and investments. The financing section includes cash flows from issuing/repaying debt and equity. The net cash flow is calculated by summing these three sections along with the cash at start and end of year.

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83 views

CFS Format

This document outlines the format of a cash flow statement prepared using the indirect method. It includes sections for cash flow from operating, investing and financing activities. The operating activities section shows how net profit is adjusted for non-cash expenses/incomes like depreciation, and changes in working capital, to calculate net cash from operations. The investing section includes cash flows from purchases/sales of fixed assets and investments. The financing section includes cash flows from issuing/repaying debt and equity. The net cash flow is calculated by summing these three sections along with the cash at start and end of year.

Uploaded by

Avanthika
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FORMAT OF CASH FLOW STATEMENT (INDIRECT METHOD) FOR THE YEAR ENDED……

Particulars Amount
I. Cash flow from operating activities
(A) Net profit before tax and extraordinary items
(B) (+) non-operating expenses/non-cash expenses
- Depreciation
- Interest on borrowings and debentures
- Loss on sale of fixed assets
- Increase in provision for doubtful debts
(C) (-) non-operating incomes/non-cash incomes
- Interest income
- Dividend income
- Rent income
- Gain(profit) on sale of fixed assets
(D) Operating profit before working capital changes (A+B-C)
(E) (+) decrease in current assets and increase in current liabilities
- Decrease in Inventories (stock)
- Decrease in trade receivables (debtors/bills receivables)
- Decrease in accrued incomes
- Decrease in prepaid expenses
- Increase in trade payables (creditors/bills payables)
- Increase in o/s expenses
- Increase in advance incomes
(F) Increase in current assets and decrease in current liabilities
- Increase in inventories (stock)
- Increase in trade receivables (debtors/bills receivables)
- Increase in accrued incomes
- Increase in prepaid expenses
- Decrease in trade payables (creditors/bills payables)
- Decrease in o/s expenses
- Decrease in advance incomes
- Decrease in provision for doubtful debts
(G) Cash generated from operations (D+E-F)
(H) (-) income tax paid (net of refund received)
(I) Cash flow before extraordinary items
(-) extraordinary items (+/-)
(J) Cash flow from(or used in) operating activities

II. Cash flow from Investing activities


- Proceeds from sale of fixed assets
- Proceeds from sale of investments (other than marketable securities)
- Proceeds from sale of sale of intangible assets
- Interest and dividend received (for non-financial companies only)
- Rent income
- Purchase of fixed assets
- Purchase of Investments (other than marketable securities)
- Purchase of intangible assets like goodwill
- Extraordinary items (e.g. insurance claim on machinery against fire) (+/-)
Cash flow (or used in) Investing activities
III. Cash flow from Financing Activities
Proceeds from issue of shares and debentures
Proceeds from other long-term borrowings
Increase/decrease in bank overdraft and cash credit
Final dividend paid
Interim dividend paid
Interest on debentures and loans
Repayment of loans
Redemption of debentures/preference shares
Share issue expenses
Buy-back of shares as extraordinary activities
Cash flow from (or used in) financing activity

IV. Net increase/decrease in cash and cash equivalents (I+II+III)


V. (+) cash and cash equivalents in the beginning of the year
- Cash-in-hand
- Cash at bank
- Short-term deposits
- Marketable securities
VI. Cash and cash equivalents at the end of the year

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