Cash Flow Statement

17 October 2020
12:08 PM

Net Profit Before Tax Add: Cash Inflow from Investing activity Add: Cash inflow from Financing activity Calculation of Net profit before Tax Cash and cash equivalent
Add: Non Operating and Non Cash Expenses
Depreciation of Tangible assets
Sale of tangible fixed assets issue of equity shares capital + premium - discount) Net profit after tax (OR) surplus [CLOSING - OPENING] → Cash on hand
Sale of intangible fixed assets issue of preference share capital ( + premium - discount) Add: Transfers to reserves(ANY RESERVE) [CLOSING - OPENING]
Amortization of intangible assets-goodwill/patents/copyrights/Trademark Sale of non current investment issue of debenture (+ premium - discount) Previous years' proposed dividend on equity shares → Cash at bank
Bad debt Sale of long term investment Receipt of short term/long term loans and advances taken Previous years' proposed dividend on preference shares → Short term investment
Provision for doubtful debt (increase or created)(when bad debt) Sale of goodwill/patents/copyrights Receipt of short term/long term borrowings Interim dividend/interest paid on equity shares
Paid Interest on short/long Term loans and advances taken Receipt of loans and advances given to Public in general Increase in bank overdraft/cash credit Interim dividend/interest paid on preference shares
→ Marketable securities
Paid Interest on short term/long term borrowings Receipt of loans and advances given to Other Company Less: Cash outflow from Financing Activity Provision for tax made during the CURRENT YEAR → Demand deposits with bank
Paid Interest/dividend on debentures
Paid Interest on bank overdraft
received interest on investment buy back of equity shares (+ premium - discount) Increase in Provision for doubtful debt(when no bad debt) → Treasury bills
received interest/dividend on shares held as investment redemption of preference shares (+ premium - discount) Loss on sale of short term investment/marketable securities
Loss on sale of fixed assets received interest/dividend on debentures held as investment redemption of debentures (+ premium - discount) Less: Refund of income tax credit to the statement of P/L → Commercial paper
Loss on sale of Investment Rent received on asset held as investment repayment of short term/long term loans and advances Decrease in provision for doubtful debt(when no bad debt) → Money market fund
Written off Discount or loss on issue of debentures Interest received on loans and advances given to Public in general Repayment of short term/long term borrowings Gain on sale of short term investment/marketable securities
Written off underwriters' commission Interest received on loans and advances given to Other Company Decrease in bank overdraft/cash credit
→ Investment in preference shares redeemable within 3 months
Written off Share issue expenses Less: Cash outflow from investing activity Expenses on issue of shares
Written off premium on redemption of preference share/debenture Purchase of tangible fixed assets Underwriting commission
Increase in Debenture sinking fund Purchase of intangible fixed assets Paid interest on short term/long term loans and advances taken
Increase in development rebate reserve Purchase of non current investment Paid Interest on short term/long term loans and advances taken
Less : Non Cash Income Purchase of long term investment Paid Interest on short term/ long term borrowings
Written off a liability Purchase of Goodwill/patents/copyrights Paid interest/dividend on debentures
Written off bad debt Loans and advances given to Public in general Paid Interest on bank overdraft
Gain on sale of fixed assets Loans and advances given to Other Company Previous years' proposed dividend on equity shares
Gain on sale of Investment Previous years' proposed dividend on preference shares
Provision for doubtful debt (decrease)(when bad debt) Interim Dividend/interest paid on equity shares
or Interim Dividend/interest paid on preference shares
excess provision written back(when bad debt)
decrease in Debenture sinking fund
decrease in development rebate reserve
received interest on investment
received interest/dividend on shares held as investment
received interest/dividend on debentures held as investment
Rent received on asset held as investment
Interest received on loans and advances given to Public in general
Interest received on loans and advances given to Other Company

Operating Profit Before Working Capital Changes

Add: ↓ Current assets ↑ Current Liability
Excluding Cash and cash equivalent
Bank overdraft and cash credit
Less: ↑Current assets ↓ Current Liability
Excluding Cash and cash equivalent
Bank overdraft and cash credit

Cash Generated from Operations

Less: Tax paid( minus refund of income tax)
NET CASH FLOW FROM/USED IN OPERATING ACTIVITIES (A) NET CASH FLOW FROM/USED IN INVESTING ACTIVITIES (B) NET CASH FLOW FROM/USED IN FINANCING ACTIVITIES (C) Net Profit before tax
INCREASE OR DECREASE IN CASH AND BANK BALANCES (A) +( B) + (C)
Add: Opening cash and BANK BALANCES
Short term investment
Marketable securities
CLOSING CASH AND CASH EQUIVALENT

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