Increase of Debtors

Accounts payable is a financial accounting

term that refers to the current liabilities of a
company for any outstanding obligations
they have to another supplier in relation to
colonels business which shows a value ASSIGNMENT Q
increase of 5000.
Prepare a leaflet that
highlights the importance
& Contents of the cash
Flow statement.

CONCLUSION
Throughout this brochure, I have described Unit 6: Financial
Accounting
the relevance relation cash flow statement as
well as interpreting current aspects relation to APPLICATION OF FUNDS
colonel’s business. Moreover, the
consequences and strategies involves within

M3
the aspects.

Decrease of Creditor
Knowing how much a business owes as well as
how much they are owed and when payments
must be made or received lets businesses have
By: Tarandeep Singh,
an idea of their cash flow over the next several
months for example: colonel’s business also 40095900
makes sure that businesses have enough money
in the bank for business payments which shows
a decrease of 19,000.
 What is Cash flow statement?
The Cash flow statement (CFS) reports and represents
operating cash flow as well as other cash flow
information. It provides important info to investors
and creditors.
. Cash
DIFFERENCES BETWEEN CFS & CFF?
A cash flow statement shows the
actual cash flows of the business in the
recent past (like a bank statement).
A cash flow forecast is a prediction of
future cash flows into and out of a
business.
Importance of cash, liquidity
Cash flow statement for Colonel’s
Cars.
Cash prioritizes business decisions in relation
to Colonel’s car business as it will allow him to
reduce his expenses and enhance his
business accessibility as well as to increase
their Revenue for example: Colonel’s business
made a £20,000 profit.
LIQUIDITY
It is a type of financial issue that shows or
determines the financial statement of the
business of it is going into a loss or a profit.
It shows how the business is repaying the
debate in the business by short terms.
It shows the business is going into current or
fluid. It shows how the business makes
enough money so that the cost goes well like
the gross profit and expenditure.
SOURCES OF FUNDS
Net profit before tax
This involves measuring the company’s profitability
through looking at their profits made before any tax is
paid for example: colonel’s net profit before tax is
140,000.
Add Depreciation
This accumulates and allocates the cost of Colonel’s
business asset to expense over the useful life of the
asset for example: its depreciation is a debit to
depreciation Expense and a credit to accumulation
Depreciation, as the current stats shows colonel’s
business deprecated value is 9000.
Decrease in stock
A stock moves up or down in price because of
investor sentiment. If investors believe a stock is
worth more than its current price, it moves up. If they
believe it’s worth less, it moves down. This is not the
same thing as saying a stock moves up or down
because it's intrinsically worth more or less than the
current price.