Determine the calculations for the cash flows, Financial Management

Assignment Help:

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.

 


Related Discussions:- Determine the calculations for the cash flows

Blue sky, Blue Sky It refers to laws that safeguard investors from bei...

Blue Sky It refers to laws that safeguard investors from being misled by investment people who misrepresent the significance value of investments to get the money of the finan

Find the minimum annual savings, Baldwin Company is interested in buying a ...

Baldwin Company is interested in buying a new corporate jet for $6 million. It will depreciate the jet fully in 5 years and then sell it for $5 million. The jet will use $60,000 in

Marginal weighting system, uses and limitations of the marginal weighting s...

uses and limitations of the marginal weighting system

Venture Capital, Difference between venture capital and conventional financ...

Difference between venture capital and conventional financing

Illustrate the steps of creative accounting, Illustrate the steps of Creati...

Illustrate the steps of Creative accounting Creative accounting include: 1 Timing of transactions. Delaying or hurrying up the despatch of invoices at the yearend to decr

Effective rate of interest (eri), Question- Under a hire purchase deal str...

Question- Under a hire purchase deal structured by X Finance Ltd. for Y Corporation, the finance company has offered to finance the purchase of equipment that costs Rs. 200 lakh.

WEALTH.., What is the fastest way to be rich?

What is the fastest way to be rich?

Pension reforms, Pension Reforms On January 1, 2004, Pension Funds have...

Pension Reforms On January 1, 2004, Pension Funds have come into force in India. Government servants will have to subscribe to them. The new pension fund system is primarily dr

Measure a project’s risk as the change in the cv, Define why we measure a p...

Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in

State the major decision of financial management, State the major decision ...

State the major decision of financial management The major decision of financial management is the decision relating to dividend policy. The dividend must be analysed in relat

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