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
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.
If your doing monthly, it should be May because working capital changes is between current period and previous period.
What ever it is, comparison can be done between only one period, so use may.
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