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Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activity, and financial activity
Operating Activity:
Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the
Financial Activity:
Financial activity is the part of the cash flow statement. Financial activity involves the long term liability, borrowing and
Investing Activity:
Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.
To Identify: Cash flow from operating activities
Explanation of Solution
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Company Name |
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Statement of cash flow |
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For the Year Ended 31 December 20XX |
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Cash flow from operating activities: |
Amount ($) |
Amount ($) |
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Net profit before tax and extraordinary items |
xxx |
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Adjustments for: |
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xxx |
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Patent written off |
xxx |
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Foreign exchange |
xxx |
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Investment profit |
xxx |
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Gain or loss on sale of fixed assets |
xxx |
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Profit on building |
(xxx) |
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Loss on equipment |
xxx |
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Interest/dividend |
xxx |
xxx |
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Operating profit before |
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xxx |
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Adjustment for: |
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Trade and other receivable |
xxx |
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Inventories |
xxx |
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Allowance for doubtful account |
xxx |
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Note payable(short term) |
xxx |
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Trade payable |
xxx |
xxx |
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Cash generated from operation |
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xxx |
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Interest paid |
(xxx) |
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Direct taxes |
(xxx) |
xxx |
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Cash extraordinary items |
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xxx |
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Deferred revenue |
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xxx |
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Net cash from operating activities |
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xxx |
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