Cash flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called the cash flow statement. Cash Flow: In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow. Determine the operating cash flow using the indirect method and prepare the statement of cash flows of Pavolik Company.

Question

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Answer 1

Question

Chapter 14, Problem 4E

To determine

Cash flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called the cash flow statement.

Cash Flow: In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow.

Determine the operating cash flow using the indirect method and prepare the statement of cash flows of Pavolik Company.

Expert Solution & Answer

Answer to Problem 4E

Solution: The operating cash flow of the company is $130 and the cash flow statement is prepared as under by using the indirect method.

Explanation of Solution

Operating Cash Flow is the cash flow where the cash is given or received in the course of routine business operations. Hence, purchase or payments to creditors, receipt or sales to debtors, payments to employees etc are classified as operating cash flows since these happen during the normal course of business.

Particulars	Amount ($)
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax	120
Adjustment for Non-cash items / items
Loss on sale land	6
Gain on sale of investments	(10)
Operating Profit before change in working capital	116
Cash flow from operations before working capital changes
Increase / (Decrease) in Current Liabilities and Current Assets:
Accounts payable	35
Accumulated depreciation	60
Accrued Liabilities	(4)
Income Taxes Payable	8
Inventory	70
Prepaid Expenses	(9)
Accounts receivable	(110)
Cash flow from operations after working capital changes	166
Income Taxes paid	(36)
Net Cash Flow from Operating Activities	130
CASH FLOW FROM INVESTING ACTIVITIES
Property Plant and Equipment	(200)
Sale of Land	9
Long term Investments	16
Net Cash Flow from Investing Activities	(175)
CASH FLOW FROM FINANCING ACTIVITIES
Bonds payable	150
Common Stock	(80)
Dividend paid	(30)
Net Cash Flow from Financing Activities	40
Net Increase/ (Decrease) in Cash and Cash Equivalents	(5)
Opening Cash & Cash Equivalents	90
Closing Cash & Cash Equivalents	85

Steps to calculate the operating cash flow:

The non −cash items like depreciation charged to Profit and loss statement (and not the accumulated depreciation), provisions for bad debts are first added to the net income earned by the entity which gives the operating profit before it changes in working capital.
The operating profit is them adjusted according to the changes in the working capital that is increase/decrease in current assets and current liabilities of the business. This gives the cash flow from operating activities after the working capital changes.
Direct taxes actually paid (and not just provided for) are then deducted from the cash flow from operations after working capital changes and this gives the net cash flow from operating activities.

Steps to calculate the investing cash flow:

Investing Cash Flow is one where there is a change in the capital structure of the company. These are usually made in the events of amalgamations, reconstructions, demergers and related events where the whole capital structure of the company is restructured. Hence, purchase of common stock or the purchase of an asset which are all long term investments made with the purpose of reaping long term benefits are termed as investing cash flows.

The purchase of property, plant, equipment, land or any other tangible fixed asset is deducted from the total cash flows.
The sale of property, plant, equipment, land or any other tangible fixed asset or investment or an asset held for reaping long term benefits is added to the total cash flows.

Steps to calculate financing cash flow:

Financial cash flows, as the name suggests, relate to the financial inflow and outflow of business. Repayment of debt, payment of interest and dividends are thus classified as financial cash flows.

It mainly relates to the inflow and outflow of the funds of the business and payment to the investors of long term capital in the company.

The addition to the capital base of the company like purchase or buy-back of common stock, new loan taken, debt borrowed are added to the total cash flows.
The repayment of debt or loan, sale of common stock, reduction in equity are deducted from the total cash flows.
Financial interest or dividend paid are also considered as financing activities and are thus deducted from the total cash flows when paid by the company.

Conclusion

The operating cash flows and the total cash flows of the company are thus obtained.

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Students have asked these similar questions

Sharon Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company's six divisions. Sharon made the following presentation to Carla Vista's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,300." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,900 $1,763,900 Cost of goods sold 978,400 76,500 1,054,900 Gross profit 684,600 24,400 709,000 Operating expenses 528,500 49,700 578,200 Net income $156,100 $(25,300 ) $130,800 In the Percy Division, cost of goods sold is $60,100 variable and $16,400 fixed, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Sharon right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding…

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Answer 2

Question

Chapter 14, Problem 4E

To determine

Cash flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called the cash flow statement.

Cash Flow: In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow.

Determine the operating cash flow using the indirect method and prepare the statement of cash flows of Pavolik Company.

Expert Solution & Answer

Answer to Problem 4E

Solution: The operating cash flow of the company is $130 and the cash flow statement is prepared as under by using the indirect method.

Explanation of Solution

Operating Cash Flow is the cash flow where the cash is given or received in the course of routine business operations. Hence, purchase or payments to creditors, receipt or sales to debtors, payments to employees etc are classified as operating cash flows since these happen during the normal course of business.

Particulars	Amount ($)
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax	120
Adjustment for Non-cash items / items
Loss on sale land	6
Gain on sale of investments	(10)
Operating Profit before change in working capital	116
Cash flow from operations before working capital changes
Increase / (Decrease) in Current Liabilities and Current Assets:
Accounts payable	35
Accumulated depreciation	60
Accrued Liabilities	(4)
Income Taxes Payable	8
Inventory	70
Prepaid Expenses	(9)
Accounts receivable	(110)
Cash flow from operations after working capital changes	166
Income Taxes paid	(36)
Net Cash Flow from Operating Activities	130
CASH FLOW FROM INVESTING ACTIVITIES
Property Plant and Equipment	(200)
Sale of Land	9
Long term Investments	16
Net Cash Flow from Investing Activities	(175)
CASH FLOW FROM FINANCING ACTIVITIES
Bonds payable	150
Common Stock	(80)
Dividend paid	(30)
Net Cash Flow from Financing Activities	40
Net Increase/ (Decrease) in Cash and Cash Equivalents	(5)
Opening Cash & Cash Equivalents	90
Closing Cash & Cash Equivalents	85

Steps to calculate the operating cash flow:

The non −cash items like depreciation charged to Profit and loss statement (and not the accumulated depreciation), provisions for bad debts are first added to the net income earned by the entity which gives the operating profit before it changes in working capital.
The operating profit is them adjusted according to the changes in the working capital that is increase/decrease in current assets and current liabilities of the business. This gives the cash flow from operating activities after the working capital changes.
Direct taxes actually paid (and not just provided for) are then deducted from the cash flow from operations after working capital changes and this gives the net cash flow from operating activities.

Steps to calculate the investing cash flow:

Investing Cash Flow is one where there is a change in the capital structure of the company. These are usually made in the events of amalgamations, reconstructions, demergers and related events where the whole capital structure of the company is restructured. Hence, purchase of common stock or the purchase of an asset which are all long term investments made with the purpose of reaping long term benefits are termed as investing cash flows.

The purchase of property, plant, equipment, land or any other tangible fixed asset is deducted from the total cash flows.
The sale of property, plant, equipment, land or any other tangible fixed asset or investment or an asset held for reaping long term benefits is added to the total cash flows.

Steps to calculate financing cash flow:

Financial cash flows, as the name suggests, relate to the financial inflow and outflow of business. Repayment of debt, payment of interest and dividends are thus classified as financial cash flows.

It mainly relates to the inflow and outflow of the funds of the business and payment to the investors of long term capital in the company.

The addition to the capital base of the company like purchase or buy-back of common stock, new loan taken, debt borrowed are added to the total cash flows.
The repayment of debt or loan, sale of common stock, reduction in equity are deducted from the total cash flows.
Financial interest or dividend paid are also considered as financing activities and are thus deducted from the total cash flows when paid by the company.

Conclusion

The operating cash flows and the total cash flows of the company are thus obtained.

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Answer 3

Question

Chapter 14, Problem 4E

To determine

Cash flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called the cash flow statement.

Cash Flow: In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow.

Determine the operating cash flow using the indirect method and prepare the statement of cash flows of Pavolik Company.

Expert Solution & Answer

Answer to Problem 4E

Solution: The operating cash flow of the company is $130 and the cash flow statement is prepared as under by using the indirect method.

Explanation of Solution

Operating Cash Flow is the cash flow where the cash is given or received in the course of routine business operations. Hence, purchase or payments to creditors, receipt or sales to debtors, payments to employees etc are classified as operating cash flows since these happen during the normal course of business.

Particulars	Amount ($)
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax	120
Adjustment for Non-cash items / items
Loss on sale land	6
Gain on sale of investments	(10)
Operating Profit before change in working capital	116
Cash flow from operations before working capital changes
Increase / (Decrease) in Current Liabilities and Current Assets:
Accounts payable	35
Accumulated depreciation	60
Accrued Liabilities	(4)
Income Taxes Payable	8
Inventory	70
Prepaid Expenses	(9)
Accounts receivable	(110)
Cash flow from operations after working capital changes	166
Income Taxes paid	(36)
Net Cash Flow from Operating Activities	130
CASH FLOW FROM INVESTING ACTIVITIES
Property Plant and Equipment	(200)
Sale of Land	9
Long term Investments	16
Net Cash Flow from Investing Activities	(175)
CASH FLOW FROM FINANCING ACTIVITIES
Bonds payable	150
Common Stock	(80)
Dividend paid	(30)
Net Cash Flow from Financing Activities	40
Net Increase/ (Decrease) in Cash and Cash Equivalents	(5)
Opening Cash & Cash Equivalents	90
Closing Cash & Cash Equivalents	85

Steps to calculate the operating cash flow:

The non −cash items like depreciation charged to Profit and loss statement (and not the accumulated depreciation), provisions for bad debts are first added to the net income earned by the entity which gives the operating profit before it changes in working capital.
The operating profit is them adjusted according to the changes in the working capital that is increase/decrease in current assets and current liabilities of the business. This gives the cash flow from operating activities after the working capital changes.
Direct taxes actually paid (and not just provided for) are then deducted from the cash flow from operations after working capital changes and this gives the net cash flow from operating activities.

Steps to calculate the investing cash flow:

Investing Cash Flow is one where there is a change in the capital structure of the company. These are usually made in the events of amalgamations, reconstructions, demergers and related events where the whole capital structure of the company is restructured. Hence, purchase of common stock or the purchase of an asset which are all long term investments made with the purpose of reaping long term benefits are termed as investing cash flows.

The purchase of property, plant, equipment, land or any other tangible fixed asset is deducted from the total cash flows.
The sale of property, plant, equipment, land or any other tangible fixed asset or investment or an asset held for reaping long term benefits is added to the total cash flows.

Steps to calculate financing cash flow:

Financial cash flows, as the name suggests, relate to the financial inflow and outflow of business. Repayment of debt, payment of interest and dividends are thus classified as financial cash flows.

It mainly relates to the inflow and outflow of the funds of the business and payment to the investors of long term capital in the company.

The addition to the capital base of the company like purchase or buy-back of common stock, new loan taken, debt borrowed are added to the total cash flows.
The repayment of debt or loan, sale of common stock, reduction in equity are deducted from the total cash flows.
Financial interest or dividend paid are also considered as financing activities and are thus deducted from the total cash flows when paid by the company.

Conclusion

The operating cash flows and the total cash flows of the company are thus obtained.

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Answer 4

Question

Chapter 14, Problem 4E

To determine

Cash flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called the cash flow statement.

Cash Flow: In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow.

Determine the operating cash flow using the indirect method and prepare the statement of cash flows of Pavolik Company.

Expert Solution & Answer

Answer to Problem 4E

Solution: The operating cash flow of the company is $130 and the cash flow statement is prepared as under by using the indirect method.

Explanation of Solution

Operating Cash Flow is the cash flow where the cash is given or received in the course of routine business operations. Hence, purchase or payments to creditors, receipt or sales to debtors, payments to employees etc are classified as operating cash flows since these happen during the normal course of business.

Particulars	Amount ($)
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax	120
Adjustment for Non-cash items / items
Loss on sale land	6
Gain on sale of investments	(10)
Operating Profit before change in working capital	116
Cash flow from operations before working capital changes
Increase / (Decrease) in Current Liabilities and Current Assets:
Accounts payable	35
Accumulated depreciation	60
Accrued Liabilities	(4)
Income Taxes Payable	8
Inventory	70
Prepaid Expenses	(9)
Accounts receivable	(110)
Cash flow from operations after working capital changes	166
Income Taxes paid	(36)
Net Cash Flow from Operating Activities	130
CASH FLOW FROM INVESTING ACTIVITIES
Property Plant and Equipment	(200)
Sale of Land	9
Long term Investments	16
Net Cash Flow from Investing Activities	(175)
CASH FLOW FROM FINANCING ACTIVITIES
Bonds payable	150
Common Stock	(80)
Dividend paid	(30)
Net Cash Flow from Financing Activities	40
Net Increase/ (Decrease) in Cash and Cash Equivalents	(5)
Opening Cash & Cash Equivalents	90
Closing Cash & Cash Equivalents	85

Steps to calculate the operating cash flow:

The non −cash items like depreciation charged to Profit and loss statement (and not the accumulated depreciation), provisions for bad debts are first added to the net income earned by the entity which gives the operating profit before it changes in working capital.
The operating profit is them adjusted according to the changes in the working capital that is increase/decrease in current assets and current liabilities of the business. This gives the cash flow from operating activities after the working capital changes.
Direct taxes actually paid (and not just provided for) are then deducted from the cash flow from operations after working capital changes and this gives the net cash flow from operating activities.

Steps to calculate the investing cash flow:

Investing Cash Flow is one where there is a change in the capital structure of the company. These are usually made in the events of amalgamations, reconstructions, demergers and related events where the whole capital structure of the company is restructured. Hence, purchase of common stock or the purchase of an asset which are all long term investments made with the purpose of reaping long term benefits are termed as investing cash flows.

The purchase of property, plant, equipment, land or any other tangible fixed asset is deducted from the total cash flows.
The sale of property, plant, equipment, land or any other tangible fixed asset or investment or an asset held for reaping long term benefits is added to the total cash flows.

Steps to calculate financing cash flow:

Financial cash flows, as the name suggests, relate to the financial inflow and outflow of business. Repayment of debt, payment of interest and dividends are thus classified as financial cash flows.

It mainly relates to the inflow and outflow of the funds of the business and payment to the investors of long term capital in the company.

The addition to the capital base of the company like purchase or buy-back of common stock, new loan taken, debt borrowed are added to the total cash flows.
The repayment of debt or loan, sale of common stock, reduction in equity are deducted from the total cash flows.
Financial interest or dividend paid are also considered as financing activities and are thus deducted from the total cash flows when paid by the company.

Conclusion

The operating cash flows and the total cash flows of the company are thus obtained.

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Answer 5

Chapter 14, Problem 4E

To determine

Cash flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called the cash flow statement.

Cash Flow: In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow.

Determine the operating cash flow using the indirect method and prepare the statement of cash flows of Pavolik Company.

Expert Solution & Answer

Answer to Problem 4E

Solution: The operating cash flow of the company is $130 and the cash flow statement is prepared as under by using the indirect method.

Explanation of Solution

Operating Cash Flow is the cash flow where the cash is given or received in the course of routine business operations. Hence, purchase or payments to creditors, receipt or sales to debtors, payments to employees etc are classified as operating cash flows since these happen during the normal course of business.

Particulars	Amount ($)
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax	120
Adjustment for Non-cash items / items
Loss on sale land	6
Gain on sale of investments	(10)
Operating Profit before change in working capital	116
Cash flow from operations before working capital changes
Increase / (Decrease) in Current Liabilities and Current Assets:
Accounts payable	35
Accumulated depreciation	60
Accrued Liabilities	(4)
Income Taxes Payable	8
Inventory	70
Prepaid Expenses	(9)
Accounts receivable	(110)
Cash flow from operations after working capital changes	166
Income Taxes paid	(36)
Net Cash Flow from Operating Activities	130
CASH FLOW FROM INVESTING ACTIVITIES
Property Plant and Equipment	(200)
Sale of Land	9
Long term Investments	16
Net Cash Flow from Investing Activities	(175)
CASH FLOW FROM FINANCING ACTIVITIES
Bonds payable	150
Common Stock	(80)
Dividend paid	(30)
Net Cash Flow from Financing Activities	40
Net Increase/ (Decrease) in Cash and Cash Equivalents	(5)
Opening Cash & Cash Equivalents	90
Closing Cash & Cash Equivalents	85

Steps to calculate the operating cash flow:

The non −cash items like depreciation charged to Profit and loss statement (and not the accumulated depreciation), provisions for bad debts are first added to the net income earned by the entity which gives the operating profit before it changes in working capital.
The operating profit is them adjusted according to the changes in the working capital that is increase/decrease in current assets and current liabilities of the business. This gives the cash flow from operating activities after the working capital changes.
Direct taxes actually paid (and not just provided for) are then deducted from the cash flow from operations after working capital changes and this gives the net cash flow from operating activities.

Steps to calculate the investing cash flow:

Investing Cash Flow is one where there is a change in the capital structure of the company. These are usually made in the events of amalgamations, reconstructions, demergers and related events where the whole capital structure of the company is restructured. Hence, purchase of common stock or the purchase of an asset which are all long term investments made with the purpose of reaping long term benefits are termed as investing cash flows.

The purchase of property, plant, equipment, land or any other tangible fixed asset is deducted from the total cash flows.
The sale of property, plant, equipment, land or any other tangible fixed asset or investment or an asset held for reaping long term benefits is added to the total cash flows.

Steps to calculate financing cash flow:

Financial cash flows, as the name suggests, relate to the financial inflow and outflow of business. Repayment of debt, payment of interest and dividends are thus classified as financial cash flows.

It mainly relates to the inflow and outflow of the funds of the business and payment to the investors of long term capital in the company.

The addition to the capital base of the company like purchase or buy-back of common stock, new loan taken, debt borrowed are added to the total cash flows.
The repayment of debt or loan, sale of common stock, reduction in equity are deducted from the total cash flows.
Financial interest or dividend paid are also considered as financing activities and are thus deducted from the total cash flows when paid by the company.

Conclusion

The operating cash flows and the total cash flows of the company are thus obtained.

Answer 6

Chapter 14, Problem 4E

To determine

Cash flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called the cash flow statement.

Cash Flow: In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow.

Determine the operating cash flow using the indirect method and prepare the statement of cash flows of Pavolik Company.

Expert Solution & Answer

Answer to Problem 4E

Solution: The operating cash flow of the company is $130 and the cash flow statement is prepared as under by using the indirect method.

Explanation of Solution

Operating Cash Flow is the cash flow where the cash is given or received in the course of routine business operations. Hence, purchase or payments to creditors, receipt or sales to debtors, payments to employees etc are classified as operating cash flows since these happen during the normal course of business.

Particulars	Amount ($)
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax	120
Adjustment for Non-cash items / items
Loss on sale land	6
Gain on sale of investments	(10)
Operating Profit before change in working capital	116
Cash flow from operations before working capital changes
Increase / (Decrease) in Current Liabilities and Current Assets:
Accounts payable	35
Accumulated depreciation	60
Accrued Liabilities	(4)
Income Taxes Payable	8
Inventory	70
Prepaid Expenses	(9)
Accounts receivable	(110)
Cash flow from operations after working capital changes	166
Income Taxes paid	(36)
Net Cash Flow from Operating Activities	130
CASH FLOW FROM INVESTING ACTIVITIES
Property Plant and Equipment	(200)
Sale of Land	9
Long term Investments	16
Net Cash Flow from Investing Activities	(175)
CASH FLOW FROM FINANCING ACTIVITIES
Bonds payable	150
Common Stock	(80)
Dividend paid	(30)
Net Cash Flow from Financing Activities	40
Net Increase/ (Decrease) in Cash and Cash Equivalents	(5)
Opening Cash & Cash Equivalents	90
Closing Cash & Cash Equivalents	85

Steps to calculate the operating cash flow:

The non −cash items like depreciation charged to Profit and loss statement (and not the accumulated depreciation), provisions for bad debts are first added to the net income earned by the entity which gives the operating profit before it changes in working capital.
The operating profit is them adjusted according to the changes in the working capital that is increase/decrease in current assets and current liabilities of the business. This gives the cash flow from operating activities after the working capital changes.
Direct taxes actually paid (and not just provided for) are then deducted from the cash flow from operations after working capital changes and this gives the net cash flow from operating activities.

Steps to calculate the investing cash flow:

Investing Cash Flow is one where there is a change in the capital structure of the company. These are usually made in the events of amalgamations, reconstructions, demergers and related events where the whole capital structure of the company is restructured. Hence, purchase of common stock or the purchase of an asset which are all long term investments made with the purpose of reaping long term benefits are termed as investing cash flows.

The purchase of property, plant, equipment, land or any other tangible fixed asset is deducted from the total cash flows.
The sale of property, plant, equipment, land or any other tangible fixed asset or investment or an asset held for reaping long term benefits is added to the total cash flows.

Steps to calculate financing cash flow:

Financial cash flows, as the name suggests, relate to the financial inflow and outflow of business. Repayment of debt, payment of interest and dividends are thus classified as financial cash flows.

It mainly relates to the inflow and outflow of the funds of the business and payment to the investors of long term capital in the company.

The addition to the capital base of the company like purchase or buy-back of common stock, new loan taken, debt borrowed are added to the total cash flows.
The repayment of debt or loan, sale of common stock, reduction in equity are deducted from the total cash flows.
Financial interest or dividend paid are also considered as financing activities and are thus deducted from the total cash flows when paid by the company.

Conclusion

The operating cash flows and the total cash flows of the company are thus obtained.

Answer 7

Chapter 14, Problem 4E

To determine

Cash flow statement: The statement which summarizes the net amount of cash disbursed and received in a particular activity is called the cash flow statement.

Cash Flow: In a specific period of time the amount of cash disbursed or received with regards to a particular activity is called cash flow.

Determine the operating cash flow using the indirect method and prepare the statement of cash flows of Pavolik Company.

Answer 8

Expert Solution & Answer

Answer to Problem 4E

Solution: The operating cash flow of the company is $130 and the cash flow statement is prepared as under by using the indirect method.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Operating Cash Flow is the cash flow where the cash is given or received in the course of routine business operations. Hence, purchase or payments to creditors, receipt or sales to debtors, payments to employees etc are classified as operating cash flows since these happen during the normal course of business.

Particulars	Amount ($)
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax	120
Adjustment for Non-cash items / items
Loss on sale land	6
Gain on sale of investments	(10)
Operating Profit before change in working capital	116
Cash flow from operations before working capital changes
Increase / (Decrease) in Current Liabilities and Current Assets:
Accounts payable	35
Accumulated depreciation	60
Accrued Liabilities	(4)
Income Taxes Payable	8
Inventory	70
Prepaid Expenses	(9)
Accounts receivable	(110)
Cash flow from operations after working capital changes	166
Income Taxes paid	(36)
Net Cash Flow from Operating Activities	130
CASH FLOW FROM INVESTING ACTIVITIES
Property Plant and Equipment	(200)
Sale of Land	9
Long term Investments	16
Net Cash Flow from Investing Activities	(175)
CASH FLOW FROM FINANCING ACTIVITIES
Bonds payable	150
Common Stock	(80)
Dividend paid	(30)
Net Cash Flow from Financing Activities	40
Net Increase/ (Decrease) in Cash and Cash Equivalents	(5)
Opening Cash & Cash Equivalents	90
Closing Cash & Cash Equivalents	85

Steps to calculate the operating cash flow:

The non −cash items like depreciation charged to Profit and loss statement (and not the accumulated depreciation), provisions for bad debts are first added to the net income earned by the entity which gives the operating profit before it changes in working capital.
The operating profit is them adjusted according to the changes in the working capital that is increase/decrease in current assets and current liabilities of the business. This gives the cash flow from operating activities after the working capital changes.
Direct taxes actually paid (and not just provided for) are then deducted from the cash flow from operations after working capital changes and this gives the net cash flow from operating activities.

Steps to calculate the investing cash flow:

Investing Cash Flow is one where there is a change in the capital structure of the company. These are usually made in the events of amalgamations, reconstructions, demergers and related events where the whole capital structure of the company is restructured. Hence, purchase of common stock or the purchase of an asset which are all long term investments made with the purpose of reaping long term benefits are termed as investing cash flows.

The purchase of property, plant, equipment, land or any other tangible fixed asset is deducted from the total cash flows.
The sale of property, plant, equipment, land or any other tangible fixed asset or investment or an asset held for reaping long term benefits is added to the total cash flows.

Steps to calculate financing cash flow:

Financial cash flows, as the name suggests, relate to the financial inflow and outflow of business. Repayment of debt, payment of interest and dividends are thus classified as financial cash flows.

It mainly relates to the inflow and outflow of the funds of the business and payment to the investors of long term capital in the company.

The addition to the capital base of the company like purchase or buy-back of common stock, new loan taken, debt borrowed are added to the total cash flows.
The repayment of debt or loan, sale of common stock, reduction in equity are deducted from the total cash flows.
Financial interest or dividend paid are also considered as financing activities and are thus deducted from the total cash flows when paid by the company.