Prepared by:

MARK VINCENT B. BANTOG, LPT

CHAPTER 5: Statement of Cash Flows

 Objectives:
 Discuss the components and
structures of a CFS.
 Identify transactions under
operating, investing and financing
activities.
 Prepare a statement of cash flows.
Providesinformation
about the cash receipts
and cash payments.
Shows the net increase or
decrease in cash during the
period and cash balance at
the end of the period.
Cash Flows from Operating Activities:

Cash receipts from sale of goods P xx

Cash paid for purchases of inventory (xx)
Cash paid for salaries expense (xx)
Cash paid for utilities expense (xx)
Cash paid for interest expense (xx)
Net Cash from Operating Activities P xx
Profit (Loss) P xx
Adjustments for:
Non-Cash Expenses (e.g. Depreciation) xx
Increases in Current Assets Accounts (xx)
Decreases in Current Assets Accounts xx
Increases in Current Liability Accounts xx
Decreases in Current Liability Accounts (xx)
Cash Flows from Operating Activities P xx
Receipts from sale of goods and
performance of services.
Receipts from dividends, royalties,
rental fees, commissions and other
revenues.
Payments to suppliers of goods and
services.
Payments to employees.
Payments for taxes.
Payments for interest expense.
Payments for other operating expenses.
Receipts from sale of property and
equipment.
Receipts from sale of investments in
debt or equity securities.
Receipts from collections on notes
payable.
Payments to acquire property and
equipment.
Payments to acquire debt or equity
securities.
Payments to make loans to others
generally in the form of notes
receivable.
Receipts from investments by
owners.
Receipts from issue of preference
and ordinary shares.
Receipts from issuance of notes
payable.
Payments to owners in the form of
withdrawals.
Payments of dividends.
Payments to settle notes payable.
 Cash is an important asset.
 SCF is the financial statement that explains
the net change in cash for the year.
 The SCF shows cash transactions organized
based on the operating, investing and
financing activities of the business.
 Accountants need two SFP and the current
year SCI to prepare the SCF.
THANK
YOU!