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

Explain the methods used to treat the obsolete stock, Explain the methods u...

Explain the methods used to treat the obsolete stock Review Inventory for obsolete items Make materials review board Include an obsolescence review in the closing p

Calculate most profitable investment, TC  Shipping Ltd has decided to purch...

TC  Shipping Ltd has decided to purchase a machine to augment the company's installed capacity to meet the growing demand for its products. There are three machines under considera

Letter of credit (loc), Letter of Credit (LOC) A popular bank instrumen...

Letter of Credit (LOC) A popular bank instrument begins that a bank has granted the holder an amount of credit equal to the face amount of the L/C. A bank guarantees payment of

Disadvantage or redundancy of excessive working capital, Q. Disadvantage or...

Q. Disadvantage or redundancy of excessive working capital? Excessive working capital means idle funds which earns no profit for the business operation it should have nighters

Modern approach at financial problems, Modern approach at financial problem...

Modern approach at financial problems With the advent of technology and need to tighten shipsdue to competition, financial management became as much a science as art. Efficient

Excess of the inadequate of the working capital, Every business concern sho...

Every business concern should have neigh adequate capital to run the business operations it should have neither redundant nor excess working capital non inadequate or Shortage of

Evaluate financial report and analysis, Project Specifications Complete...

Project Specifications Complete an individual Financial Report and Analysis. You will select a company that you would like to analyze based on the parameters provided by the

Longer-term bonds and short-term bonds, Questions How is a bond like...

Questions How is a bond like a loan?                                               How does an investor receive a return from buying a bond?  Does a bond's yield to ma

Evaluation of bids, E v aluation of  bids and determination of the lowes...

E v aluation of  bids and determination of the lowest  evaluated responsive and qualified bidder You learnt how to receive and open bids in the previous sub section. Here you

Explain the cash and cash equivalents, Explain the Cash and cash equivalent...

Explain the Cash and cash equivalents Cash and cash equivalents include: Bank and cash balances Short term investments that are highly liquid and can be converted

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