and capital" amounts are double-ruled.

Cash Flow Statement

A Statement of Cash Flows (or Cash Flow Statement) shows the movement in the Cashaccount of a
company. It presents cash inflows (receipts) and outflows (payments) in the three activities of business:
operating, investing, and financing.

Accountants follow the accrual basis in measuring income and expenses. However, some users are
particularly interested in the cash transactions of the company; hence the need to present a Statement
of Cash Flows. This lesson takes a look at the Statement of Cash Flows and provides some important
points in understanding it. Statement of Cash Flows Example Here is a sample cash flow statement for
Strauss Printing Services, a service type sole proprietorshipbusiness. All amounts are assumed and
simplified for illustration purposes.
 Strauss Printing Services
Statement of Cash Flows
For the Year Ended December 31, 2017

Cash Flow from Operating Activities:

Cash received from customers
P 146,000
Cash paid for expenses (81,000)
Cash paid to suppliers (47,500) P 17,500

Cash Flow from Investing Activities:

Cash paid to acquire additional equipment
(20,300)

Cash Flow from Financing Activities:

Cash received from investment of owner
P 10,000
Cash received from bank loan
50,000
Cash paid for bank loan – partial payment
(27,000)
Cash paid to owner – withdrawal
(20,000) 13,000
Net Increase (Decrease) in Cash for the Year
P 10,200
Add: Cash – January 1, 2017 10,800
Cash – December 31, 2017 P 21,000