Cash flow statements, Financial Management

Assignment Help:

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)


Related Discussions:- Cash flow statements

Steps, how control the steps

how control the steps

Relationship b/w bond''s market price and yield to maturity, What is the re...

What is the relationship between a bond's market price and its promised yield to maturity?  Explain. A bond's market price reckon on its yield to maturity (YTM).  When a bond h

Analytical way of viewing financial problems of a firm, Analytical way of v...

Analytical way of viewing financial problems of a firm The new approach is an analytical way of viewing financial problems of a firm. The main contents of this tactic are what

Determine firm sales revenue, a) Gross profit shows the difference between ...

a) Gross profit shows the difference between a firm's sales revenues and its direct cost of sales (COGS). Net profit, however, is calculated after deducting overheads (expenses) fr

Propose which investment plan, Problem There are two investment plans i...

Problem There are two investment plans in the market whose details are given below based on which you need to decide which investment plan you need to select. Propose which inv

Definition of cost of capital, Definition of cost of capital In analyzi...

Definition of cost of capital In analyzing the cost of capital it is presumed that business risk of the firm remains unchanged (i.e., that projects accepted don't affect the va

Example of relationship between bond price and time, Illustration    ...

Illustration      Discount bond (5 yr. bond with 10% coupon) (expected rate yield at 12%) Premium bo

Ranking conflict net present value & internal rate of return, Explain how t...

Explain how to resolve a "ranking conflict" between the net present value and the internal rate of return.  Why should the conflict be resolved as you explained? Whenever there

Valuing a putable bond using binomial model, In a putable bond, the b...

In a putable bond, the bondholder has the right to force the issuer to pay off the bond prior to the maturity date. Let us consider the previous example with the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd