Tiêu đề 3. CASH FLOW STATEMENT.pdf ✅

CHAPTER - 3 CASH FLOW STATEMENT
Cash flow statement is summary of cash book which shows the movement of cash & cash equivalent from one period to another period under following Activities: ▪ Cash flow from Operating Activities ▪ Cash flow from Investing Activities ▪ Cash flow from Financing Activities MEANING OF CASH FLOW STAEMENT FORMAT OF CASH FLOW STAEMENT Particulars Rs. Rs. A- Cash Flow From Operating Activities B- Cash Flow From Investing Activities C- Cash Flow From Financing Activities xxx xxx xxx Net Increase (Decrease) in cash & Cash Equivalent (A + B + C) Add: Opening cash & cash Equivalent xxx xxx Closing cash & cash Equivalent xxx
Those Activities which are related with acquisition of Fixed Assets and Long term Investments are called Investing Activities MEANING OF INVESTING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES In flows Out flows ▪ Sale of Fixed Assets (PPEs & I.A.) ▪ Sale of Investments ▪ Pre Acquisition dividend ▪ Income from Investments ▪ Interest ▪ Dividend ▪ Rent ▪ Loan & Advance (Including to Subsidiary company) (Other than Advances to Supplier & Employees) ▪ Interest on Loan & Advance (Other than on Advances to Supplier & Employees) ▪ TDS on Interest & Dividend Received ▪ Purchase of Fixed Assets ▪ Purchase of Investments ▪ Expenditure on Construction of PPE and Development of I.A. ▪ Repayment of Loan & Advances
Those Activities which are related with issue and repayment of share capital and Loans & borrowing and its cost of capital are called Financing Activities MEANING OF FINANCING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES In flows Out flows ▪ Proceeds from Issue of Equity & Preference shares and Debentures (Including premium on Issue) ▪ Raising of Loan ▪ Any Capital Grant received ▪ Buy back of Equity shares (including premium on Buy back) ▪ Redemption of preference shares and Debentures (including premium paid on redemption) ▪ Repayment of Loan ▪ Interest Paid ▪ Dividend Paid ▪ TDS paid on Interest & Dividend