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Statement of Changes in Financial Position: Cash Flow Statement
Statement of Changes in Financial Position: Cash Flow Statement
Operating Activities
Investing Activities
Financing Activities
Order of Presentation:
Direct Method
1. Operating activities.
Indirect Method
2. Investing activities.
3.Financing activities.
Three Sources of Information:
1. Comparative balance sheets
3. Additional information
Cash Flow from Operating Activities : Direct Method
XXX
Cash Payment for : XXX
Purchases
Payments to and for employees XXX
Operating Expenses
XXX
Interest Payments
Direct Taxes Paid XXX XXX
XXX
Net Cash Flow from Operating Activities XXX
Preparing the Statement of
Cash Flows