Cash Flow Statement

Cash Flow Statement - Direct and Indirect Method

What you'll learn

Cash Flow Statement - Direct and Indirect Method

Meaning and Components of Cash Flow Statement

How Cash Flow Always Tallies

How to Prepare Cash Flow Statement - Both Direct & Indirect Method

Difference between Direct & Indirect Method of Presenting Cash Flow Statement

Requirements

Basic Knowledge of English and Mathematics is required.

Description

Cash Flow Statement is one of the important financials statement along with Balance Sheet and Profit and Loss Account.It basically shows all inflows and outflow of the cash and bank balances in particular period.It basically have 3 components :1) Cash Flows from Operating Activities2) Cash Flows from Investing Activities3) Cash Flows from Financing Activities.Cash Flow From Operating Activities:This part of Cash Flow Statement basically shows cash generated from its regular business operations. Ideally this should be positive to have good financial position of the company. Important components are basically Profit , depreciation, tax provision, increase or decrease in current assets like debtors, stock etc., increase or decrease in current liabilities like creditors, trade payables etc.Cash Flow From Investing Activities:This part of Cash Flow Statement basically shows cash generated from investing activities like Sale or Purchase of Fixed Assets, Investments etc.Cash Flow From Financing Activities:This part of Cash Flow Statement basically shows cash generated from financing activities like Proceeds or Repayment of Long or Short Term Borrowing , interest paid etc.Thus Cash Flow Statement shows how well business uses its cash and how healthy are its operations, how much Company depend on borrowings and what are various investments made by the business.Cash Flow Statement end balance always matches with Cash and Bank balance amount appearing in the balance sheet.

Overview

Section 1: Introduction

Lecture 1 Introduction to Cash Flow Statement

Lecture 2 Cash Flow Statement - Indirect Method - Profit and Depreciation

Lecture 3 Cash Flow Statement - When Profit or Loss on Sale of Assets Given

Lecture 4 Cash Flow Statement - Indirect Method - When Provision for tax is given

Lecture 5 Cash Flow Statement - Indirect Method - When transfer to General Reserve Given

Lecture 6 CFS - When Equity Shares converted to Preference Shares & Advance Tax Given.

Lecture 7 Cash Flow Statement - Direct Method - Simple Example

Lecture 8 Cash Flow Statement - Indirect Method - Comprehensive Example

Lecture 9 Cash Flow Statement - Direct Method - Comprehensive Example

Learners of Finance and Accounts,Learners of Cash Flow Statement