Please enable JavaScript.
Coggle requires JavaScript to display documents.
Cash Flow Statement - Coggle Diagram
Cash Flow Statement
Cash Flows (Depending upon the nature of Business)
Investing
Acquiring and disposing of PPE and investments
Purchase of Assets - Outflow (Negative)
Sales of Assets - Inflow (Positive)
Prepare ledger account for each asset
Add Interest Received (which was
reduced in Operating Activities(
Add dividend received
Finance
Obtaining and returning funds
Debt
Borrowing - Inflow (Positive) ; Repaying - Outflow (Negative)
Equity
Issue - Inflow (Positive); Buyback - Outflow (Negative)
Net Value can be Positive / Negative
Dividend paid
Operating
Producing and delivering goods and services
Add all the non operating expenses
Depreciation
Transfer to Reserve - no cash outflow is there
Laws allow companies to have various kinds of Reserves
Loss on sale of asset - you're receiving less money but there is no outflow
Subtract Non Operating Income
Transfer from Reserve
Gain on sale of assets
Impact of Changes in Working Capital : CA and CL
Add Decrease in CA ; Add Increase in CL
Subtract Increase in CA ; Subtract decrease in CL
Subtract Tax paid during the year
If net value is positive - Inflow
If net value is negative - Outflow
Subtract Interest Received
Subtract dividend received
Imp Points - 1. Reserves do not imply the availability of cash 2. Depreciation reduces profit, but leaves cash unaffected
Unrealized gains and losses affect profit, not cash
Ind As7
Cash and Cash Equivalents will not be considered while creation of CFS
How much cash is being generated?
Cash + Cash Equivalents