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How to do Cash Flow Statements

Learn how to create and analyze cash flow statements effectively, including direct and indirect calculations, profit and loss accounts, and closing balances. Understand investing and financing activities for a comprehensive financial overview.

haroldmorgan
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How to do Cash Flow Statements

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  1. How to do Cash Flow Statements 7.1. Cash Flow Statements Financial Accounting - Where's the Money?

  2. How to do Cash Flow Statements • Draw the five accounts: accounts receivable and sales, inventories, cost of sales and accounts payable, and fill in all figures known. See if there are any changes in accrued revenue or expense or in deferred revenue or expense, and in provisions. Financial Accounting - Where's the money?

  3. How to do Cash Flow Statements • Apply the information obtained not only to the direct and indirect cash flow calculations, but also to the profit and loss account and the closing balance. • Do the direct cash flow calculation. Financial Accounting - Where's the money?

  4. How to do Cash Flow Statements • Write down the profit and loss account. • Calculate the indirect cash flow. • Draw all other asset, liability and equity accounts, and fill in all figures known. Financial Accounting - Where's the money?

  5. How to do Cash Flow Statements • Find out about all investing activities. Use this information for the closing balance if applicable. • Find out about all financing activities. Use this information for the closing balance if applicable. • Complete the closing balance. Financial Accounting - Where's the money?

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