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Cash Flow Statement (Sample - Direct & Indirect) - Easy PDF
Cash Flow Statement (Sample - Direct & Indirect) - Easy PDF
Cash Flow Statement (Sample - Direct & Indirect) - Easy PDF
$36,000
(20,000)
(2,000)
14,000
0
$200,000
$214,000
$400,000
$450,000
$3,000,000
Therefore:
Beginning Accounts Receivable
+ Credit Sales
- Cash Received
= Ending Accounts Receivable
OR
Cash Received = Beg. AR + Credit Sales Ending AR.
Define AR = Ending AR Beginning AR, where means
the change in the account balance, then:
Cash Collections = Credit Sales AR.
In our example,
Cash collections = $3,000,000 - $50,000 = $2,950,000.
There was a total of $3,000,000 in sales, but not all of it
was collected in cash. Because there was an increase in
AR, the cash received was less than total sales.
$300,000
175,000
1,915,000
$2,390,000
$360,000
120,000
1,660,000
$2,140,000
$240,000
800,000
150,000
$310,000
55,000 = 745,000
2000
5,040,000
-3,660,000
-260,000
-745,000
375,000
$4,000
25,000
5,000
37,000
316,000
(45,000)
342,000
$14,000
32,500
7,000
34,000
270,000
(30,000)
327,500
Accounts payable
Wages payable
Note payable
Capital stock
Retained earnings
Total Liabilities & Equity
$18,000
4,000
173,000
88,000
59,000
342,000
$16,000
7,000
160,000
84,000
60,500
327,500
Sales
Cost of goods sold
Depreciation expense
Insurance expense
Wage Expense
Net Income
2000
$200,000
(123,000)
(15,000)
(11,000)
(50,000)
1,000
Direct Method
Cash Flow from Operations:
Cash received from customers
Cash paid for inventory
Cash paid for insurance
Cash paid for wages
Cash flow from operations
207,500
-124,000
-9,000
-53,000
21,500
-46,000
-2,500
13,000
4,000
14,500
-10,000
14,000
4,000
Indirect Method
Cash Flow from Operations:
Net Income
Depreciation Expense
Accounts receivable
Prepaid insurance
Inventory
Accounts payable
Wages payable
Cash Flow from Operations
1,000
15,000
7,500
2,000
-3,000
2,000
-3,000
21,500
-46,000
-2,500
13,000
4,000
14,500
-10,000
14,000
4,000