he following points take to considered for cash flow

1. opening cash and bank balance

2. any capital gains or losses
3. working capital
4. depreciation of assets

Re: HOW DO PREPARE CASH FLOW Answer

#2
Cash flow statement is prepared according to accounting
Standard 3.

in cash flow we need to clasify accounting information into

operating activities and investments activities and financial
activities

before going to prapare first we need to understand what is

the motive of the cash flow statement

cash flow statement can be prepared by using either direct

method or indirect method
but accounting standard 3 recommends only indirect method

but in case of insurance companies as per insurance

companies act,1938 cash flow statement should be prapared
acording to direct method.

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