Cash flow statement
This query is : Resolved
02 December 2015
what is cash flow statement ?
can anybody explain with example.
thanks in advance
can anybody explain with example.
thanks in advance
02 December 2015
cash flow statement means that statement which deals with the cash flow in an organisation
For Example if Opening balance is 10 and there is an expense of 5 and income of 10 and the closing balance is 15
Then in Direct method of cash flow statement we will show
opening balance 10
inflow 10
outflow 5
closing balance 15
another method of Indirect method is by making reverse calculation from Net profit and adding depreciation
these cash flows will be segregated into Operating Activities, Investing Activities and Financing Activities
Extraordinary Items are shown separately
For Example if Opening balance is 10 and there is an expense of 5 and income of 10 and the closing balance is 15
Then in Direct method of cash flow statement we will show
opening balance 10
inflow 10
outflow 5
closing balance 15
another method of Indirect method is by making reverse calculation from Net profit and adding depreciation
these cash flows will be segregated into Operating Activities, Investing Activities and Financing Activities
Extraordinary Items are shown separately
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