Step by step approach to completing a statement, Financial Management

Assignment Help:

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.


Related Discussions:- Step by step approach to completing a statement

Sources of finance, Classification of finance and abrief description of eac...

Classification of finance and abrief description of each source of fund

Valuation using treasury spot rates, To understand how treasury spot ...

To understand how treasury spot rates are used to calculate the arbitrage-free value of the treasury security, we will take imaginary treasury spot rates (given i

Compare diversifiable and nondiversifiable risk, Compare diversifiable and ...

Compare diversifiable and nondiversifiable risk. Which do you think is more important to financial managers in business firms? Diversifiable risk is able to be dealt with by of

Operating cycle, #question application of an operating.cycle in vegetable g...

#question application of an operating.cycle in vegetable growing business.

Illustrate the meaning of gearing, Illustrate the meaning of Gearing G...

Illustrate the meaning of Gearing Gearing is the relationship between equity anddebt. Debt is typically long term liabilities that the organisation has. Equity is all the shar

Capm model and financial leverage beta , 1. Capital Asset Pricing Model an...

1. Capital Asset Pricing Model and Multinational Corporations Why do some critics say the CAPM model is not appropriate in an international setting? Please explain a way that

How do financial managers decide which proposed capital, For a given IOS an...

For a given IOS and MCC, how do financial managers decide which proposed capital budgeting projects to accept, and which to reject? For a given MCC and IOS, all independent pro

Define discounting the equity cash flow, Which of these two methods is bett...

Which of these two methods is better: discounting the Equity Cash Flow or discounting the Free Cash Flow? The results we get by discounting the Equity Cash Flow and the Free Ca

Identify the parties by name that have an obligation, Identify the parties ...

Identify the parties by name that have an obligation: a. Buyer/Alpha hears a rumor that the toys have not been manufactured according to the expected specifications for such t

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