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Cash Flow Statement Format

This document outlines the calculation of cash flow from operating, financing, and investing activities using the indirect method. It details adding non-cash expenses and subtracting non-cash incomes to reconcile net profit to cash generated from operations. Cash flow from financing includes proceeds from issuing stock or loans and cash outflows like dividend payments. Cash flow from investing includes cash from selling assets and cash used to purchase assets and investments. The three cash flows are summed to calculate the net cash flow and change in cash balance.

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Soumya Ranjan Pradhan
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46 views

Cash Flow Statement Format

This document outlines the calculation of cash flow from operating, financing, and investing activities using the indirect method. It details adding non-cash expenses and subtracting non-cash incomes to reconcile net profit to cash generated from operations. Cash flow from financing includes proceeds from issuing stock or loans and cash outflows like dividend payments. Cash flow from investing includes cash from selling assets and cash used to purchase assets and investments. The three cash flows are summed to calculate the net cash flow and change in cash balance.

Uploaded by

Soumya Ranjan Pradhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cash Flow Statement

Format of Indirect Method

Calculation of Cash Flow from Operating Activities

Net Profit before tax xxx


Add: Non-cash and non-operating items which have
already been debited to P&L A/c:
a. Depreciation xxx
b. Transfer to Reserve & Surplus xxx
c. Goodwill written off xxx
d. Preliminary expenses written-off xxx
e. Discount or loss on issue of shares/debentures
written-off xxx
f. Loss on sale of disposal of fixed assets xxx
g. Loss on sale of investments xxx
------ xxx
------
xxx
Less: Non-cash and non-operating items which have
already been credited to P&L A/c :
a. Gain on sale of fixed assets xxx
b. Profit on sale of investments xxx
c. Income from interest or dividends on investments xxx
------ xxx
------
xxx
Add: Decrease in current assets (except cash/bank):
a. Decrease in Debtors xxx
b. Decrease in Bills Receivable xxx
c. Decrease in Inventory xxx
d. Decrease in prepaid expenses xxx
------- xxx
------
xxx
Add: Increase in current liabilities(except bank overdraft):
a. Increase in creditors xxx
b. Increase in Bills Payable xxx
c. Increase in outstanding expenses xxx
------ xxx
------
xxx
Less: Increase in current assets (as stated above) xxx
-------
xxx
Less: Decrease in current liabilities (as stated above) xxx
-------
Cash generated from operating activities before tax xxx
Less: Income tax paid xxx
-------
NET CASH FLOW FROM OPERATING ACTIVITIES xxx
Calculation of Cash Flow from Financing Activities

Cash Inflows:
a. Proceeds from issue of share capital xxx
b. Proceeds from long-term borrowings/loans xxx
c. Proceeds from issue of debentures xxx
------ xxx

Cash outflows:
a. Dividend Paid xxx
b. Interest paid xxx
c. Repayment of long-term loans xxx
d. Redemption of debentures xxx
------- xxx
-------
NET CASH FLOW FROM FINANCING ACTIVITIES xxx

Calculation of Cash Flow from Investing Activities

Cash Inflows:
a. Sale of fixed assets xxx
b. Sale of investments xxx
c. Interest received xxx
d. Dividend received xxx
------ xxx

Cash outflows:
a. Purchase of fixed assets xxx
b. Purchase of investments (shares) xxx
------- xxx
-------
NET CASH FLOW FROM INVESTING ACTIVITIES xxx
-----------------------------------------------------------------------------------------------

NET CASH FLOW FROM OPERATING ACTIVITIES xxx


NET CASH FLOW FROM FINANCING ACTIVITIES xxx
NET CASH FLOW FROM INVESTING ACTIVITIES xxx

Add: Opening cash balance xxx


-----
CLOSING BALANCE OF CASH (as given in Balance Sheet) xxx

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