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Cash flow statement - CONFIRMATION OF STATEMENT

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JAGANATHAN R ACMA, SAP(Fi-Co)

Manager Accounts and Finance

663 Points Posted on 16 May 2021

Hi,

I have the details of balance sheet from April to June 2020

The question is prepare the cash flow statement as on June 2020?

for preparing the June 2020 statement can i consider the May 2020 figure or April 2020 figure for increase and decrease the asset and liabilities

pl. suggest

Replies (5)

Quick Summary

This discussion clarifies how to prepare a cash flow statement for June 2020 using balance sheet data from April to June. The consensus is that for monthly calculations, the May 2020 figures should be used to reflect working capital changes between periods. This allows for a direct comparison between the current and previous periods.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 16 May 2021

Cash flow is calculated by making certain adjustments to net income by adding or subtracting differences in revenue, expenses, and credit transactions (appearing on the balance sheet and income statement) resulting from transactions that occur from one period to the next. So period ending june is to be taken.