Cash Flow Statement : Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents. Cash : It includes Cash in Hand & Deposits with Bank. Cash Equivalents : It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less. Operating Activities : Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and Investing activities. Investing Activities: Investing activities are the activities related to acquisition and disposal of long term assets and investments. The investments are those investments which are not included in cash & cash equivalent. Financing Activities: Financing activities are the activities which results in change in size and composition of owner’s capital and borrowing of the enterprise. To Calculate: Increase in Accounts Receivable Decrease in Inventory Decrease in Accounts Payable Cash Paid for issuance of Notes

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Chapter 16, Problem 13E

To determine

Concept Introduction:

Cash Flow Statement: Cash Flow Statement is the statement reflecting the flow of Cash & Cash Equivalents.

Cash: It includes Cash in Hand & Deposits with Bank.

Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.

Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and Investing activities.

Investing Activities: Investing activities are the activities related to acquisition and disposal of long term assets and investments. The investments are those investments which are not included in cash & cash equivalent.

Financing Activities: Financing activities are the activities which results in change in size and composition of owner’s capital and borrowing of the enterprise.

To Calculate:

Increase in Accounts Receivable

Decrease in Inventory

Decrease in Accounts Payable

Cash Paid for issuance of Notes

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