Step by step approach to completing a statement, Financial Management

Step by step approach to completing a statement of cash flows

Step by step approach to completing a statement of cash flows

Step 1

Set out pro forma, by using a whole side of paper leaving lots of spaces between 3 main headings of operating, investing and financing activities.



Step 2

Set up a workings page and read through all the additional information. Also make notes to see how they affect the statement of cash flows.

Step 3

Complete operating activities section (using the method instructed by question either direct or indirect). Incorporating interest and taxation cash flows if necessary.

Step 4

Complete investing activities section by looking at non-current assets. Make sure you take account of both intangible and tangible noncurrent assets.

Step 5

Complete  financing  section  by  looking  at  share  capital,  long  term  debt  and capital element of finance leases.

Step 6

Finally review income statement and statement of financial position to ensure all items have been dealt with. Complete the remaining statement of cash flows, and double check that decrease or increase in cash and cash equivalents during the period, corresponds to movement in cash and cash equivalent balances in 2 statement of financial position.

Posted Date: 9/2/2013 5:06:03 AM | Location : United States

Related Discussions:- Step by step approach to completing a statement, Assignment Help, Ask Question on Step by step approach to completing a statement, Get Answer, Expert's Help, Step by step approach to completing a statement Discussions

Write discussion on Step by step approach to completing a statement
Your posts are moderated
Related Questions
Other than zero coupon bonds, all fixed income securities make periodic payments in the form of coupon interest. This coupon interest can be rei

Nominal spread of a non-treasury bond can be defined as the difference between the bond's yield and the yield to maturity of a benchmark treasury coupon security.

Q. Explain about receivables management? Receivable Management: - The term receivables demote to debt owed to the firm by the customers resulting from sale of goods or else ser

What are the Objectives of Financial Management To make wise decisions a clear understanding of the objectives that are sought to be achieved in compulsory. Objectives provide

Q. What is Evaluation of Credit Policy? Evaluation of Credit Policy: - A credit policy is prepared to maintain the investment in receivables at optimum level. Receivable Turnov

Additional Paid in Capital - Amounts paid for stock in excess of its PAR VALUE or STATEDVALUE. Furthermore, other amounts paid by stockholders and charged to EQUITY ACCOUNTS other


Breaks in Specific Cost of Capital: The specific costs of capital may also be affected by the amount of finance the firm wants to raise. As the amount of financing increases, the

Investment Objectives: Any investment should always start with identifying its objective. Thus, the first step in the pension fund investment management system is defining the