Determine the calculations for the cash flows, Financial Management

The calculations for the cash flows

Actual amount of cash paid or received during the period needs to be established. This can get quite  tricky  as  there  would be  accruals bought  forward, carried  forward and  prepayments  bought forward and carried  forward. There will also be transactions which don't affect cash flow such as depreciation and re-valuations.

Best way of doing this is to set up a "T"account, fill in all the relevant information and balancing figure will be cash figure. For direct method, "T" accounts can also be used toestablishreceipts from customers, cash payments to suppliers etc.

Illustrations of "T"accounts to establish cash flow.

 

Posted Date: 9/2/2013 4:10:25 AM | Location : United States







Related Discussions:- Determine the calculations for the cash flows, Assignment Help, Ask Question on Determine the calculations for the cash flows, Get Answer, Expert's Help, Determine the calculations for the cash flows Discussions

Write discussion on Determine the calculations for the cash flows
Your posts are moderated
Related Questions
a) Social marketing is the use of normal marketing methods to achieve the benefits of social change, such as informing the public about the harm of under-age drinking, rather than


The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31,

How can we measure the Present Value When we solve for present value, rather than compounding the cash flows to the future, we discount future cash flows to present value to ma

briefly discuss the three approaches to the short-term financing problems and examples of each

What happens to the riskiness of a portfolio if assets with very low correlations (even negative correlations) are combined? How successfully diversification decreases risk reli

Two companies are identical in all aspects except in the debt-equity profile. Company X has 14% debentures worth Rs. 25,00,000 whereas company Y does not have any debt. Both compan

Which method should we use to valuate young companies with high growth but uncertain futures? Two examples were Boston Chicken and Telepizza when they began. The great majo

Evaluation: Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process wo

assume that risk free rate is 8% and expected rate of return in market is 12%. what is the required rate of return on stock with a beta of 0.8%