INSTITUTE-UNIVERSITY SCHOOL OF

BUSINESS
DEPARTMENT-MBA
Master of Business Administration
Financial Reporting and Analysis
BAT-601

CASH FLOW STATEMENT

DISCOVER . LEARN . EMPOWER
 CASH FLOW
STATEMENT

Course Outcome
CO Title Level
Number

CO1 To impart understanding of the Basic Principles of Remember Will be covered in this
Accounting, Accounting Standards, Reading and Analyzing lecture
Balance sheets and its application in modern day business
CO2 To prepare various financial statements i.e. trading Understand
account, Profit and loss account and balance sheet, P/L
Appropriation account, cash flow statement etc.
CO3 To provide knowledge of concepts those are helpful in Understand
financial decision making

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 Meaning
• Cash: Cash means all cash + cash equitable + marketable securities + bank
balance.
• Flow: Flow means flow of cash from business to economy and economy to
business i.e. cash inflows and cash outflows.
• Statement : Statement is a Performa prescribed by Charted Accountant
Act,1948.
• Cash Flow Statement is a statement o f inflows (sources) and outflows
(uses) of cash and cash equivalents in an enterprise during a specified
period of time.

• Provides information about cash inflows and outflows during an accounting

period
• Is developed from Balance Sheet and Income Statement data
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 Classification

• Cash Flow form Operating Activities

• Cash Flow from Investing Activities
• Cash Flow from Financing Activities

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 Format of Cash Flow Statement
ABC Limited
For the year ended…………..
(A) Cash Flows from Operating Activities:
Net Profit before tax & extraordinary items
Adjustment 1:
Depreciation & Amortization xxx
Provision for Doubtful Debts xxx
Foreign Exchange gain/loss xxx
Dividend xxx
Interest xxx
Gain/ Loss on sale of fixed assets/investments xxx xxx
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 Continued….
Operating Profit before Working Cap. Changes xxx
Adjustment 2 for changes in working capital:
Bills Receivables xxx
Debtors xxx
Inventories xxx
Prepaid Expenses xxx
Bills Payable xxx
Creditors xxx xxx
Cash Generated from Operations xxx
Income tax paid xxx
Cash before Extraordinary Items xxx
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 Continued….

Extraordinary Items xxx

Net Cash from (used in) Operating Activities xxx

(B) Cash Flow from Investing Activities:

Purchase of Fixed Assets xxx
Proceeds from Sale of fixed assets xxx
Purchase of Investments xxx
Proceeds from Sale of investments xxx
Interests received xxx
Dividend received xxx
Net Cash from (used in) Investing Activities xxx
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 Continued….
(C) Cash Flow from Financing Activities:
Proceeds from Issue of Shares/ Debentures xxx
Proceeds from Long-term debts xxx
Repayment of Long-term Debts xxx
Redemption of Debentures xxx
Redemption of Preference Shares xxx
Dividend paid xxx
Interest paid xxx
Net Cash from (used in) Financing Activities xxx
Net increase/decrease in cash and Cash Equivalents (A+B+C) xxx
Cash and Cash Equivalents at the beginning of the year
xxx
Cash and Cash Equivalents at the end of the year xxx 14
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Assessment Pattern

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THANK YOU