Cash flow statements, Financial Management

Cash flow statement:

The cash flow statement summarises the flow of cash into and out of the business over a certain period of time.

The cash flow statement measures the liquidity of the business (its ability to meet its debts in a timely manner).

The cash flow statement is one of the key financial statements for management accounting and is the primary statement managers would utilise in for the day to day running of the business.

A typical basic cash flow statement could look like the following:

Item Description

Jul

Aug

Sep

Oct

Nov

Dec

Receipts

 

 

 

 

 

 

Prof Fees / Commissions

32,000

36,000

38,000

30,000

40,000

38,000

Owner's Funds

 

20,000

 

 

 

 

Bank Loans

 

 

 

30,000

 

 

Total Receipts

32,000

56,000

38,000

60,000

40,000

38,000

 

 

 

 

 

 

 

Payments

 

 

 

 

 

 

Advertising

8,000

6,000

8,000

9,000

5,000

4,200

Wages

20,000

21,000

22,000

24,000

21,000

23,000

Telephone

3,000

 

 

4,000

 

 

Taxes

 

 

 

 

28,000

 

Other

10,000

11,000

12,000

15,000

10,000

13,000

Total payments

41,000

38,000

42,000

52,000

64,000

40,200

Net monthly movement

(9,000)

18,000

(4,000)

8,000

(24,000)

(2,000)

Opening Cash Balance

(4,000)

(13,000)

5,000

1,000

9,000

(15,000)

Closing Cash Balance

(13,000)

5,000

1,000

9,000

(15,000)

(17,000)

Posted Date: 10/1/2012 4:36:15 AM | Location : United States







Related Discussions:- Cash flow statements, Assignment Help, Ask Question on Cash flow statements, Get Answer, Expert's Help, Cash flow statements Discussions

Write discussion on Cash flow statements
Your posts are moderated
Related Questions
Q. Problems in computations of cost of retaining earning? Problems in computations of cost of retaining earning: it is sometimes argued that retained earning do not involve any

capital structure

Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that

A bond is said to be currently callable if the issue is not protected against early call provision. But most new bond issues, even if currently callable, us

How would you incorporate political risk into the capital budgeting process of foreign investment projects? One method is to adjust the cost of capital upward to imitate politi

Portfolio Project The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice. You are gi

A callable bond is the sale of a call option by the investor to the issuer as it allows the issuer to repurchase the bond from the time it becomes callable until

discuss the applicability of an operating cycle of a vegetable growing business

Q. What are the needs for financial statement analysis? The financial statements are to be studies for the following purposes. a) To make comparisons between two sets of fin

Floating rate securities can be broadly divided into following two parts: Floating-rate securities that have constant quoted margin. Floating-rate sec