Passed-202!09!19 Tabuk City Preparation of Cash Flow Statement

Preparation of Cash Flow
Statement
Activity Sheets
ABM II
https://corporatefinanceinstitute.com/resources/knowledge/accounting/statement-of-cash-flows/
Developed by: MARYLYN A. YUMUL

Republic of the Philippines
Department of Education
Cordillera Administrative Region
SCHOOLS DIVISION OF TABUK CITY
City Hall Compound, Dagupan, Tabuk City
Published by the:
LEARNING RESOURCE MANAGEMENT AND DEVELOPMENT SYSTEM

(LRMDS)
Copyright 2019
COPYRIGHT NOTICE
Section 9 of Presidential Decree No. 49 provides:
“No copyright shall subsist in any work of the Government of the

Republic of the Philippines. However, prior approval of the government
agency or office wherein the work is created shall be necessary for
exploitation of such work for profit.”
This material has been developed for the implementation of K-12

Curriculum through the Curriculum Implementation Division (CID)—Learning
Resource Management and Development System (LRMDS). It can be
reproduced for educational purposes and the source must be acknowledged.
Derivatives of the work including creating an edited version, an enhancement
or a supplementary work are permitted provided all original work is
acknowledged and the copyright is attributed. No work may be derived from
this material for commercial purposes and profit.
Developer: MARYLYN A. YUMUL
ii
PREFACE
This Activity Sheets is a project under the Curriculum Implementation

Division and the Learning Resource Management and Development
Management under the Department of Education, School Division of Tabuk
City.
The Learning Material is a property of the Department of Educations –

CID School Division of Tabuk City. This material’s target is to enhance the
learners’ performance in Accountancy, Business and Management.
Date of Development : March 8, 2019

Resource Location : Tabuk City National High School – NTD 2
Learning Area : Accountancy, Business and Management
Grade Level : 11
LR Type : Activity Sheet
Quarter/Week : If-11
Competencies : ABM_FABM12-If-11
: Cash Flow Statement Preparation
iii
ACKNOWLEDGEMENT
Firstly, all praises to Almighty God for His countless blessings of strength and
patience during the crafting of this instructional material.
I would like to express my sincere gratitude to our school head,
Ms. Mildred S. Cabay, for the opportunity to attend LAC sessions specifically on
crafting of Instructional Materials..
Special thanks to our resource speaker and school LRMDS coordinator,
Ms. Raymunda C. Bayubay for sharing her expertise on crafting of instructional
materials and for her suggestions for a better output.
My sincere thanks also go to Mr. Limson D. Dumogo, my mentor, to my fellow
ABM teachers and my friends in the teaching profession for their motivation and
great knowledge that helped me in crafting this material.
I am also thankful to Mr. Emmanuel Ubuan, Education Program Supervisor
and focal person for Senior High School for evaluating and recommending this
material.
Last but not the least, I would like to thank Miya, Valery and Justine, my
children for their spiritual support and understanding throughout these days.
DIVISION LRMDS STAFF
TEOFILA P. AGSUNOD LORIET L. IYADAN

Librarian II Project Development Officer II
HELEN B. ORAP
Education Program Supervisor-LRMDS
CONSULTANTS
LORRAINE F. TUBBAN
Chief, Curriculum Implementation Division
VIRGINIA A. BATAN
OIC-Assistant Schools Division Superintendent
BENEDICTA B. GAMATERO
OIC, Schools Division Superintendent
iv
Tabuk City National
School Grade Level 11
High School
Fundamentals of
Learning Accountancy,
Teacher Marylyn A. Yumul
Area Business &
DAILY Management 2
LESSON Teaching Dates and 2nd Semester – 1st
Semester
LOG Time Quarter
I. OBJECTIVES
A. Content Standards The learners demonstrate an understanding of the
components and the structure of a CFS that will equip
him / her in the preparation of the said financial report.
B. Performance Standards The learners shall be able to solve exercises and problems
that require preparation of a CFS.
C. Learning At the end of the lesson, learners are expected to reflect
Competencies/Objectives on the importance of preparing and understanding Cash
(Write the LC code for each) Flow Statement
The learners prepare a Cash Flow Statement (CFS).

(ABM_FABM12-If-11)
II. CONTENT Cash Flow Statement (CFS)

III. LEARNING RESOURCES
A. References
1. Teacher’s Guide page pp. 46
2. Learner’s Material Page
3. Textbook Page Fundamentals of Accountancy, Business and
Management 2, 2nd Edition. Rodiel C. Ferrer & Zeus
Vernon B. Millan, pp. 76-89
Basic Accounting, 4th Edition. Edwin G. Valencia &
Gregorio F. Roxas, pp. 521-548
4. Additional Materials from Learning https://www.accountingcoach.com/cash-flow-
Resources (LR) portal statement/explanation
www.accounting-basics-for-students.com/cash-flow-
statement-example.html
B. Other Learning Resources
IV. PROCEDURES
A. Reviewing previous lesson or ACTIVITY 1. Am I “IN” or “OUT”
presenting the new lesson
Learners will be asked to complete a table showing all the
money a student received and spent for the whole last week.
B. Establishing a purpose for the lesson What is the importance of knowing and keeping a record of
the “in” and “out” of your allowance?
How about your parents, what could be the importance of

knowing the above activity?
C. Presentation of examples ACTIVITY 2. “I Belong”
or instances of the new lesson
Group the learners in accordance with their experiences in
the following activities:
1. Palay Production
2. Corn Production
3. Hog Raising
4. Other Business like direct selling and other forms
of business
Arrange the different activities involved in your chosen

group according to activity. Let 1 representative present their
output.
D. Discussing new concept and Teacher will present the 2 types of preparing CFS.
practicing new skills #1 1. Direct Approach
2. Indirect Approach
E. Discussing new concepts and Teacher will present a pro-forma of Statement of Cash Flows
practicing new skills #2 illustrating the three major activities.
1. Operating
2. Investing
3. Financing
F. Developing Mastery ACTIVITY 3: Statement of Cash Flow Preparation (of
(Leads to Formative Assessment) Farming / Business / Hog Raising)
Following the pro-forma of Cash Flow Statement, let the

group prepare a cash flow statement of their chosen
activity or business based on Activity Sheet 2.
G. Finding practical applications of If you are to recall, how your parents or relatives have been
concepts and skills in daily living running their farm or business, have you seen them keeping
track of all their expenses and income?
Now that you learned about the importance and process of

recoding cash flow, how will you apply it?
H. Making generalizations and abstracts Why is keeping record of all your cash transactions
about the lesson important?
I. Evaluating Learning ACTIVITY 4: Now I know It!
Let the learners identify transactions (on the production of
Coffee and Cacao Cookies of Bantay) according to major
activities and be able to prepare a Statement of Cash Flow.
J. Additional activities for application or

remediation
K. REMARKS
Prepared by: MARYLYN A. YUMUL Checked by: LIMSON D. DUMOGO

MT II – MATH Department
Preparation of Cash Flow
Statement
Activity Sheets
ABM II
https://www.google.com/search?q=preparation+of+cash+flow+images&client=ms-android-
oppo&prmd=inv&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjqjIaivMnhAhUYTo8KHX6PCxQQ_AUoAXoECAsQAQ&biw=360&bih=649#i
mgrc=LzbWnuvFQgBRbM
GUIDE SHEET
CASH FLOW AND ITS IMPORTANCE
In our previous lesson, the teacher

explained that Cash Flow is simply the total
cash received less those that was spent. This
is very important in order to find out how
much money was spent and how much was
left. This is also one way of reconciling cash
on hand versus ending cash balance.
https://ph.images.search.yahoo.com/yhs/search;_ylt=AwrwJU007P
lcz24A_xsGIYpQ
For me to reconcile
cash on hand vs ending cash
balance, I have to prepare
Cash Flow Statement.
It is also important that

I have to know if the cash is
INFLOW or OUTFLOW of
cash and be able to know if
this falls under operating,
financing or investing.
https://ph.images.search.yahoo.com/yhs/search;_ylt=AwrwJU007P
lcz24A_xsGIYpQ
2
TWO WAYS OF PREPARING THE CASH FLOW STATEMENT
1. DIRECT
- Deducts from cash sales only those operating expenses that consumed
cash. This method converts each item on the income statement directly to
a cash basis.
- The direct method of cash flow in operating activities includes the cash
being received from the customers and the cash paid to the suppliers,
employees and others such as tax and other variables.
- The statement of cash flows starts with cash transactions such as cash
received and cash paid while ignoring the non-cash transactions.
2. INDIRECT
- This starts with accrual basis net income and indirectly adjusts net income
for items that affected reported net income but did not involve cash.
- The indirect method of cash flow uses net income as the base and does
the adjustments needed.
- The statement of cash flows starts from the net income and then it goes
along with adjusting the other transactions.
The Statement of Financial Accounting Standards No. 95 encourages use of the direct
method but permits use of the indirect method. Whenever given a choice between
direct methods in similar situations, accountants choose the indirect method almost
exclusively.
3
Activity 1. AM I “IN” OR “OUT”
Instructions:
1. Fill-out the amount stated in the transaction to the column IN for every amount
received and column OUT for every amount spent.
2. Get the total IN and OUT
Miya is being trained to budget her weekly allowance and by doing so, her weekly
allowance is given every Monday. Below are list of weekly list of Miya’s spending. Find
out how much money she has at the end of the week by identifying if the activity is
counted as IN or OUT.
ACTIVITY / SOURCE IN OUT
1. Miya received P 1,000 as allowance from her
mother for the week.
2. During the week, she spent a total of P 350 in
buying meat and dried fish as food supply for
the week.
3. She received P 250 as a price for winning the
raffle draw held during the foundation day.
4. She paid P 500 to her landlady as rental for
the month.
5. She saved P 50 to Tabuk Multi-purpose
Cooperative (TAMPCO).
6. She spent P 100 for fare.
TOTAL
Total Cash Left (IN less OUT)
Money spent is an OUTFLOW while money received is an INLFOW.
4
Activity 2. “I BELONG”(rice farming)
Instructions: Identify if the activity in the transaction falls under Operating, Investing
or Financing.
The following are activities of a farmer from land preparation, planting, maintenance
and harvesting. During the said activity, the following are related activities with their
corresponding expenses.
TYPE OF
TRANSACTIONS
ACTIVITY
As new to farming, he availed loan from Tabuk Multi-purpose
Cooperative (TAMPCO) to finance his farm with net proceeds of
P 46,250.
He contacted his neighbor who owns a tractor to prepare his rice
field upon paying P 3,000.
He also contacted the “kabasilya” for the schedule of “raep” and
paid P 5,000.
He bought rice seedlings at P 5,000.
He bought one (1) set spray can from Tienda Ti Mannalon at
P 3,500.
He also bought pesticide that can kill golden kuhol at P 600.
When the rice field and “bunobun” are now ready for “sekka” and
“raep”, he contacted the “kabasilya” and spent P 1,000 for their
merienda.
Conrado was lucky to have harvested net of 100 cavans of palay,
sold it immediately to Palchan’s Grains Center at a total of
P 82,500.
Paid his borrowed money at Tabuk Multi-purpose Cooperative
(TAMPCO) amounting to P 50,000.
Financing is outsourcing money for the business usually coming from either
borrowings or savings. This also covers repayment of loans.
Investing is spending money for the purchase of Plant, Property & Equipment (PPE).
Operating includes all other activities except those from financing and investing.
5
Activity 2B. “ I Belong” (corn farming)
or Financing.
TRANSACTIONS TYPE OF
ACTIVITY
Conrado Balweg was given one (1) hectare rice field as his
“tawid” from his grandfather.
As new to farming, he availed loan from Tabuk Multi-purpose
Cooperative (TAMPCO) to finance his farm with a net proceeds
of P 46,250.
He contacted his neighbor who owns a tractor to prepare his
corn field upon paying P 3,000.
He bought 2 cavans corn seeds from Matagoan Farm Supply
worth P 10,000 and fertilizers and herbicides worth P 4,500.
He purchased spray can at Cabaruan Farm Supply worth
P 6,000.
He paid the wages of laborers amounting to P 6,000 and spent
P 1,500 for their snacks.
Few months after, he paid laborers who harvested his corn
amounting to P 12,000.
He contacted his neighbor who hauled his corn to Genesis
Grains Center. He received a total of P 120,000 as payment of
his sold corn produce.
He paid P 9,100 for the hauling of his corn to Genesis Grains
Center.
He paid his loan of P 50,000 with Tabuk Multi-purpose
Investing is spending money for the purchase of Plant, Property & Equipment
(PPE).
6
Activity 2C. “ I Belong” (hog raising)
or Financing.
The following are activities involved in raising pigs which starts from pigpen construction to
disposal of matured pigs.
ACTIVITY
Mang Ambo is an Overseas Filipino Worker (OFW) who came home
for good. For five (5) years of working in Taiwan he was able to save
P 180,000 to start a business at his own.
He constructed pigpen good for ten (10) piglets and spent a total
amount of P 80,000.
He also spent P 60,000 for the construction of deep well for the ready
water supply of the pigs.
He bought ten (10) heads of piglets from the neighborhood amounting
to P 30,000.
He bought vitamins amounting to P 3,500.
He also availed of the services of the Feeds Technician to inject his
piglets and paid P 4,500.
He sold his 10 pigs to Sarol Meat Shop at a total amount of P 169,000.
Within the period of 4 months, he has a total credit with Tienda ti
Mannalon amounting to P 75,000.
He also deducted P 12,000 as wage of his caretaker and helper and
P 10,000 for electric bill.
He also spent P 5,500 for the repair of his pig pens.
7
Activity 2D. “ I Belong” (other business)
or Financing.
The following are activities of Aling Rosa who is a Sari-Sari Store owner.
ACTIVITY
Aling Rosa paid P 5,000 to the owner of the stall she is renting
for her sari-sari store.
She availed a net of P 46,250 microfinance loan from Tabuk
Farmers Multi-purpose Cooperative (TAFAMULCO) payable in
10 months.
She purchased grocery items amounting to P 35,000 as initial
display in her sari-sari store.
She withdraws P 25,000 from her savings account with Rural
Bank of Tabuk and bought display cabinets at P 10,000 and
refrigerator at P17,000.
For the first ten (10) days, her total sales amounted to P 28,000.
She purchased additional merchandise amounting to P 20,000.
She has total sales again of P 10,000.
She paid P 5,000 as wage of her sales lady, electric bill of
P 2,000 and water bill P 1,000.
She paid P 5,000 to Tabuk Farmers Multi-purpose Cooperative
(TAFAMULCO) as first payment of her loan.
8
Activity 3A. CASH FLOW STATEMENT
Instruction: Prepare the Cash Flow statement of a palay farmer based from Activity 2A.
Mr. A. Palay Farming

Cash Flow Statement
For the month ended January 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES

Proceeds from Sales
Wage / Salary
Farm Inputs
Other Miscellaneous Expenses
Net Cash from Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Equipment / Materials
Net Cash from Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES

Loan Proceeds
Loan Payment
Net Cash from Financing Activities
NET INCREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
Step 1. Prepare the operating activities Step 2. Prepare the Financing Activities
Step 3. Prepare the Investing Activities Step 4. Reconcile the change in cash
Outflows are written with open and close parenthesis.

To get the Net Increase in Cash and Cash Equivalents, get the sum of the Net cash
from Operating, Investing and Financing
9
Activity 3B. CASH FLOW STATEMENT
Instruction: Prepare the Cash Flow statement of a corn farmer based from Activity 2B.
Mr. A. Corn Farming

Cash Flow Statement

Proceeds from Sales
Wage / Salary
Farm Inputs
Hauling and Other Miscellaneous Expenses

Purchase of Equipment / Materials

Loan Proceeds
Loan Payment


from Operating, Investing and Financing.
10
Activity 3C. CASH FLOW STATEMENT
Instruction: Prepare the Cash Flow statement of a hog raiser based from Activity 2C.
Mr. A Hog Raiser

Cash Flow Statement

Proceeds from Sales
Wage / Salary
Purchase of Piglets
Payment of Feeds and other Miscellaneous Expenses
Power, Light and Water

Building Construction
Deep well construction

Cash from Savings
Loan Payment


11
Activity 3D. CASH FLOW STATEMENT
Instruction: Prepare the Cash Flow statement of a sari-sari store owner based from
Activity 3D
Mr. A N. Others
Cash Flow Statement

Sales
Purchases
Rent Expense

Equipment and Materials

Proceeds from loan
Cash from Savings
Payment of Loan


12
ASSESSMENT
Activity 4. NOW I KNOW IT!

INSTRUCTION: Prepare a Cash Flow Statement of the owner of Coffee and Cacao.
Cookies of Bantay based on the list of transactions.
1. Ms. Bautista availed a loan from Department of Science and Technology

amounting to P 200,000 as capital for her coffee and cacao cookies production.
2. She used the said amount to purchase the following: Cooling Rack P 15,000,
Cabinets P 17,000, Baking Tables P 30,000, sealer P 10,000 and Dough Mixer P
40,000 from Bides Catering and General Merchandise.
3. She also purchased measuring spoons, cups, spatula, and containers at New Look
Bakeshop worth P 6,500 and baking sheets worth P 5,000.
4. She purchased consumables good for 1 month such as Flour, Sugar, baking
powder, baking soda, salt and margarine at Bayle Supermart worth P 28,000 and
packaging materials worth P 7,000.
5. She also purchased coffee and cacao from the neighborhood worth P 3,000.
6. Her total sale for the month is P 85,000.
7. She paid water bill and electricity bill amounting to P 5,000 and wage of the baker
P 8,000.
8. She made partial payment of P 50,000 for her loan with DOST.
Bautista Coffee Industry

Cash Flow Statement

Sales
Purchase of Consumables
Salaries / Wages

Materials and Equipment

Proceeds from loan

13
ENRICHMENT
In 3 to 5 sentences, write a reflection on your experience in

preparing a cash flow statement.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
14
REFERENCE SHEET
• Ferrer, R. & Millan, Z. Fundamentals of Accountancy Business and Management 2.

Bandolin Enterprise. Baguio City (2017).
• Valencia, E. & Roxas, G. Basic Accounting 4th ed.Valencia Educational Supply.

Baguio City (2014).
• http://www.fao.org/3/W4343E/w4343e04.htm#chapter%20objectives
• https://courses.lumenlearning.com/suny-finaccounting/chapter/direct-and-indirect-
methods-for-preparing-a-statement-of-cash-flows/
• https://www.wallstreetmojo.com/direct-vs-indirect-cash-flow-methods/
• https://www.google.com/search?q=preparation+of+cash+flow+images&client=ms-
android-
oppo&prmd=inv&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjqjIaivMnhAhUY
To8KHX6PCxQQ_AUoAXoECAsQAQ&biw=360&bih=649#imgrc=LzbWnuvFQg
BRbM
• https://ph.images.search.yahoo.com/yhs/search:_ylt=AwrwJU007p
15
TABULAR DIFFERENCE OF DIRECT AND INDIRECT
Direct Indirect
Definition Uses only the cash It uses net income as base and
transactions; i.e. cash spent adds non-cash expenses like
and cash received to produce profit on sale of scraps and net
the cash flow statement. adjustments between current
assets and liabilities to
produce the overall cash flow
statement.
Factors Taken All non-cash transactions like All factors are taken into
depreciation are ignored. account.
Preparation There’s no such preparation Preparations are mainly
required needed during conversion of
net income into cash flow
statement.
Accuracy Very accurate and there is no Not very accurate as
need for any adjustments here. adjustments are being made.
16
PRO-FORMA STATEMENT USING INDIRECT METHOD
Entity A
Statement of Cash Flows
For the period ended December 31, 20x1
PROFIT FOR THE YEAR xx.xx
Non-cash items:
Depreciation xx.xx
Gain on sale of equipment (xx.xx)
Total xx.xx
Changes in operating assets & liabilities:
Increase in Trade and other receivables (xx.xx)
Decrease in inventory xx.xx
Decrease in prepaid assets xx.xx
Increase in Trade and other payables xx.xx
Net cash from operating activities xx.xx
Cash flows from investing activities:
Cash proceeds from sale of equipment xx.xx
Cash paid for the acquisition of equipment (xx.xx)
Net cash used in investing activities (xx.xx)
Cash flows from financing activities:
Cash proceeds from short-term loan xx.xx
Cash receipt from contribution by owner xx.xx
Net cash from in financing activities xx.xx
Net increase in cash and cash equivalents xx.xx
Cash and cash equivalents, beginning xx.xx
Cash and cash equivalents, ending xx.xx
17
PRO-FORMA STATEMENT USING DIRECT METHOD
Entity A
Statement of Cash Flows
For the period ended December 31, 20x1
Cash flows from operating activities:
Cash receipts from rendering of services xx.xx
Cash paid for purchases of inventory (xx.xx)
Cash paid for salaries expense (xx.xx)
Cash paid for insurance expense (xx.xx)
Cash paid for utilities expense (xx.xx)
Net cash from operating activities xx.xx
Cash flows from investing activities:
Cash paid for the acquisition of equipment (xx.xx)
Net cash used in investing activities (xx.xx)
Cash flows from financing activities:
Repayment of loan borrowed (xx.xx)
Cash proceeds from investment by owner xx.xx
Cash payments to owner (xx.xx)
Net cash used in financing activities (xx.xx)
Net increase in cash xx.xx
Cash, beginning balance xx.xx
Cash, ending balance xx.xx
18
ANSWER SHEET
Activity 1. AM I “IN” OR “OUT”
Instructions:
1. Fill-out the amount stated in the transaction to the column IN for every amount
received and column OUT for every amount spent.
2. Get the total IN and OUT
Miya is being trained to budget her weekly allowance and by doing so, her weekly
allowance is given every Monday. Below are list of weekly list of Miya’s spending. Find
out how much money she has at the end of the week by identifying if the activity is
counted as IN or OUT.
ACTIVITY / SOURCE IN OUT
1. Miya received P 1,000 as allowance from her mother 1,000.00
for the week.
2. During the week, she spent a total of P 350 in buying 350.00
meat and dried fish as food supply for the week.
3. She received P 250 as a price for winning the raffle 250.00
draw held during the foundation day.
4. She paid P 500 to her landlady as rental for the 500.00
month.
5. She saved P 50 to AFLATOUN 50.00
6. She spent P 100 for fare. 100.00
TOTAL 1,250.00 1,000.00
Total Cash Left (IN less OUT) P 250.00
19
Activity 2A. “ I Belong”
or Financing.
TYPE OF
TRANSACTIONS
ACTIVITY
As new to farming, he availed loan from Tabuk Multi-Purpose
Cooperative (TAMPCO) to finance his farm with net proceeds FINANCING
of P 46,250.

OPERATING
rice field upon paying P 3,000.
He also contacted the “kabasilya” for the schedule of “raep”

OPERATING
and paid P 5,000.
He bought rice seedlings at P 5,000. OPERATING
He bought one (1) set spray can from Tienda Ti Mannalon at

INVESTING
P 3,500.
He also bought pesticide that can kill golden kuhol at P 600. OPERATING
When the rice field and “bunobun” are now ready for “sekka”
and “raep”, he contacted the “kabasilya” and spent P 1,000 for OPERATING
their merienda.
Conrado was lucky to have harvested net of 100 cavans of
palay, sold it immediately to Palchan’s Grains Center at a total OPERATING
of P 82,500.
Paid his borrowed money at Tabuk Multi-Purpose Cooperative

FINANCING
(TAMPCO) amounting to P 50,000.
20
Activity 2B. “ I Belong”
or Financing.
ACTIVITY
Conrado Balweg was given one (1) hectare rice field as his
INVESTING
“tawid” from his grandfather.
As new to farming, he availed loan from Tabuk Multi-Purpose
Cooperative (TAMPCO) to finance his farm with net proceeds FINANCING
of P 46,250.
OPERATING
corn field upon paying P 3,000.
He bought 2 cavans corn seeds from Matagoan Farm Supply
OPERATING
worth P 10,000 and fertilizers and herbicides worth P 4,500.
He purchased spray can at Cabaruan Farm Supply worth
INVESTING
P 6,000.
He paid the wages of laborers amounting to P 6,000 and spent
OPERATING
P 1,500 for their snacks.
Few months after, he paid laborers who harvested his corn
OPERATING
amounting to P 12,000.
He contacted his neighbor who hauled his corn to Genesis
Grains Center. He received a total of P 120,000 as payment of OPERATING
his sold corn produce.
He paid P 9,100 for the hauling of his corn to Genesis Grains
OPERATING
Center.
He paid his loan of P 50,000 with Tabuk Multi-purpose
FINANCING
21
Activity 2C. “ I Belong” HOG RAISING
or Financing.
The following are activities involved in raising pigs which starts from pigpen construction to
disposal of matured pigs.
TYPE OF
TRANSACTIONS
ACTIVITY
Mang Ambo is an Overseas Filipino Worker (OFW) who came home
for good. For five (5) years of working in Taiwan he was able to save FINANCING
P 180,000 to start a business at his own.
He constructed pigpen good for ten (10) piglets and spent a total
OPERATING
amount of P 80,000.
He also spent P 60,000 for the construction of deep well for the ready
INVESTING
water supply of the pigs.
He bought ten (10) heads of piglets from the neighborhood amounting

OPERATING
to P 30,000.
He bought vitamins amounting to P 3,500 and paid the technician

OPERATING
P 4,500 for the service rendered.
He sold his 10 pigs to Sarol Meat Shop at a total amount of P 169,000. OPERATING
Within the period of 4 months, he has a total purchase with Tienda ti

OPERATING
Mannalon amounting to P 75,000.
He also deducted P 12,000 as wage of his caretaker and helper and P

OPERATING
10,000 for electric bill.
He also spent P 5,500 for the repair of his pig pens. OPERATING
22
Activity 2D. “ I Belong”
or Financing.
The following are activities of Aling Rosa who is a Sari-Sari Store owner.
ACTIVITY
Aling Rosa paid P 5,000 to the owner of the stall she is renting
OPERATING
for her sari-sari store.
She availed a net of P 46,250 microfinance loan from Tabuk
Farmers Multi-purpose Cooperative (TAFAMULCO) payable in FINANCING
10 months.
She purchased grocery items amounting to P 35,000 as initial

OPERATING
display in her sari-sari store.
She withdraws P 25,000 from her savings account with Rural
Bank of Tabuk and bought display cabinets at P 10,000 and FINANCING
refrigerator at 17,000.
For the first ten (10) days, her total sales amounted to P 28,000. OPERATING
She purchased additional merchandise amounting to P 20,000. OPERATING
She has another total sales of P 10,000. OPERATING
She paid P 5,000 as wage of her sales lady, electric bill of

OPERATING
P 2,000 and water bill P 1,000.
She paid P 5,000 to Tabuk Farmers Multi-Cooperative

FINANCING
(TAFAMULCO) as first payment of her loan.
23
Activity 3A. CASH FLOW STATEMENT
Instruction: Prepare the Cash Flow statement of a palay farmer based from Activity 2A.
Mr. A Palay Farming

Cash Flow Statement

Proceeds from Sales P 82,500.00
Wage / Salary (8,000.00)
Farm Inputs (5,600.00)
Other Miscellaneous Expenses (1,000.00)
Net Cash from Operating Activities P 67,900.00

Purchase of Equipment / Materials P (3,500.00)
Net Cash from Investing Activities P (3,500.00)

Loan Proceeds P 50,000.00
Loan Payment P (50,000.00)
Net Cash from Financing Activities 0.00
NET INCREASE IN CASH AND CASH EQUIVALENTS P 64,400.00

CASH AND CASH EQUIVALENTS, ENDING P 64,400.00
24
Activity 3B. CASH FLOW STATEMENTEMENT
Instruction: Prepare the Cash Flow statement of a corn farmer based from Activity 2B.
Mr. A Corn Farming

Cash Flow Statement

Farm Inputs (14,500.00)
Hauling and Other Miscellaneous Expenses (10,600.00)

Purchase of Equipment / Materials (P 6,000.00)
Net Cash from Investing Activities (P 6,000.00)

Loan Proceeds P 46,250.00
Loan Payment (50,000.00)
Net Cash from Financing Activities (P 3,750.00)

25
Activity 3C. CASH FLOW STATEMENT
Instruction: Prepare the Cash Flow statement of a hog raiser based from Activity 2C.
Mr. A Hog Raiser

Cash Flow Statement

Purchase of Piglets (30,000.00)
Payment of Feeds and other Miscellaneous Expenses (89,500.00)
Power, Light and Water (10,000.00)

Building Construction ( P 80,000.00)
Deep well construction (60,000.00)

Cash from Savings P 180,000.00
Net Cash from Financing Activities P180,000.00

26
Activity 3D. CASH FLOW STATEMENT
Instruction: Prepare the Cash Flow statement of a sari-sari store owner based from
Activity 3D.
Mr. A N. Others
Cash Flow Statement

Sales P 38,000.00
Purchases (55,000.00)
Rent Expense (5,000.00)
Wages (5,000.00)
Net Cash from Operating Activities (P 30,000.00)

Equipment and Materials (P 27,000.00)

Proceeds from loan 46,250.00
Cash from Savings 25,000.00
Loan payment (5,000.00)
Net Cash from Financing Activities P 66,250.00

27
ASSESSMENT
Activity 4. NOW I KNOW IT!

INSTRUCTION: Prepare a Cash Flow Statement of the owner of Coffee and Cacao.
Cookies of Bantay based on the list of transactions.
1. Ms. Bautista availed a loan from Department of Science and Technology

amounting to P 200,000 as capital for her coffee and cacao cookies production.
2. She used the said amount to purchase the following: Cooling Rack P 15,000,
Cabinets P 17,000, Baking Tables P 30,000, sealer P 10,000 and Dough Mixer
P 40,000 from Bides Catering and General Merchandise.
3. She also purchased measuring spoons, cups, spatula, and containers at New Look
Bakeshop worth P 6,500 and baking sheets worth P 5,000.
4. She purchased consumables good for 1 month such as Flour, Sugar, baking
powder, baking soda, salt and margarine at Bayle Supermart worth P 28,000 and
packaging materials worth P 7,000.
5. She also purchased coffee and cacao from the neighborhood worth P 3,000.
6. Her total sale for the month is P 85,000.
7. She paid water bill and electricity bill amounting to P 5,000 and wage of the baker
P 8,000.
8. She made partial payment of her loan with DOST, P 50,000.
Bautista Coffee Industry
Cash Flow Statement

Sales P 85,000.00
Purchase of Consumables ( 38,000.00)
Salaries / Wages (8,000.00)

Materials and Equipment (P 123,500.00)

Proceeds from loan P 200,000.00
Net Cash from Financing Activities P 200,000.00

DepEdCARLR#-202-09-19
28

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Preparation of Cash Flow

Developed by: MARYLYN A. YUMUL

LEARNING RESOURCE MANAGEMENT AND DEVELOPMENT SYSTEM

Section 9 of Presidential Decree No. 49 provides:

“No copyright shall subsist in any work of the Government of the

This material has been developed for the implementation of K-12

Developer: MARYLYN A. YUMUL

This Activity Sheets is a project under the Curriculum Implementation

The Learning Material is a property of the Department of Educations –

Date of Development : March 8, 2019

DIVISION LRMDS STAFF

TEOFILA P. AGSUNOD LORIET L. IYADAN

The learners prepare a Cash Flow Statement (CFS).

II. CONTENT Cash Flow Statement (CFS)

How about your parents, what could be the importance of

Arrange the different activities involved in your chosen

Following the pro-forma of Cash Flow Statement, let the

Now that you learned about the importance and process of

J. Additional activities for application or

Prepared by: MARYLYN A. YUMUL Checked by: LIMSON D. DUMOGO

In our previous lesson, the teacher

It is also important that

employees and others such as tax and other variables.

received and cash paid while ignoring the non-cash transactions.

the adjustments needed.

along with adjusting the other transactions.

received and column OUT for every amount spent.

2. Get the total IN and OUT

ACTIVITY / SOURCE IN OUT

1. Miya received P 1,000 as allowance from her

mother for the week.

2. During the week, she spent a total of P 350 in

buying meat and dried fish as food supply for

3. She received P 250 as a price for winning the

raffle draw held during the foundation day.

4. She paid P 500 to her landlady as rental for

5. She saved P 50 to Tabuk Multi-purpose

6. She spent P 100 for fare.

Total Cash Left (IN less OUT)

Money spent is an OUTFLOW while money received is an INLFOW.

Cooperative (TAMPCO) to finance his farm with net proceeds of

He contacted his neighbor who owns a tractor to prepare his rice

field upon paying P 3,000.

He also contacted the “kabasilya” for the schedule of “raep” and

He bought rice seedlings at P 5,000.

He bought one (1) set spray can from Tienda Ti Mannalon at

He also bought pesticide that can kill golden kuhol at P 600.

“raep”, he contacted the “kabasilya” and spent P 1,000 for their

Conrado was lucky to have harvested net of 100 cavans of palay,

sold it immediately to Palchan’s Grains Center at a total of

Paid his borrowed money at Tabuk Multi-purpose Cooperative

(TAMPCO) amounting to P 50,000.

disposal of matured pigs.

P 180,000 to start a business at his own.

water supply of the pigs.

He bought ten (10) heads of piglets from the neighborhood amounting

He bought vitamins amounting to P 3,500.

He also availed of the services of the Feeds Technician to inject his

piglets and paid P 4,500.

He sold his 10 pigs to Sarol Meat Shop at a total amount of P 169,000.

Within the period of 4 months, he has a total credit with Tienda ti

Mannalon amounting to P 75,000.

He also deducted P 12,000 as wage of his caretaker and helper and

P 10,000 for electric bill.