Statement of Cash Flow

Statement of Cash Flow

• It reports cash flows from three types of business
activities (operating, investing, and financing) during
the month.
• Each category of cash flow activities includes both
cash receipts (positive amounts), and cash payments
(negative amounts)
Statement of Cash Flow
• Reports a net increase in cash during
the month and ends with the cash
balance at the end of the month. This
is the amount of cash reported on the
balance sheet.
Operating Activities
• Involves the production or purchase of merchandise
and the sale of goods or services to customers.

• Operating activities also includes the expenditures

related to administering the business.
Investing Activities
• Transactions that involves making and
collecting loans or that involve
purchasing and selling of plant assets,
other productive assets and
investments.
Financing Activities
• A company’s transactions with its owners
and long-term creditors.

• It includes borrowing cash on a short-term

basis.
 Operating Activities
Cash Inflow
• Cash sales to customers
• Cash collections from credit
customers
• Receipts of cash dividend
from stock investment in
other entities
• Receipts of interest
payments
• Refunds from supplies
• Cash collected from a
lawsuit
Cash Outflow
• Payment to employees for
salaries and wages
• Payments to suppliers of
goods and services
• Payments to government
agencies for taxes, fines,
and penalties
• Interest payments, net of
amounts capitalized
• Contributions to charities
• Cash refunds to customers
 Investing Activities
Cash Inflow
• Proceeds from selling of
productive assets
• Proceeds from collecting
the principal amount of
loans
• Proceeds from selling
investments in the equity
securities of other
companies
• Proceeds from selling
investments in the debt
securities of other entities
Cash Outflow
• Payments to purchase
property, plants and
equipment or other
productive assets
• Payments to acquire
equity securities of other
companies
• Payments in the form of
loans made to other
parties
 Financing Activities
Cash Inflow Cash Outflow
• Proceeds from the • Payments of dividends
issuance of equity and other distributions to
securities (shares) owners
• Proceeds from the • Payments to purchase
issuance of bonds and treasury stock
notes payable • Repayments of cash
loans
• Proceeds from other
short or long term • Payment of the principal
borrowing transactions amounts involved in
long-term credit
arrangements
 John Dela Cruz
Statement of Cash Flow
For the month ended, April 30 2012

Cash flows from operations:

Cash received from customers P 32,500
Cash paid to employee (6,000)
Cash paid for rent (5,500)
Cash paid for utilities (2,000)
Net cash provided by operating activities P 19,000

Cash flows from investing activities:

Cash used for the purchase of land (70,000)

Cash flows from financing activities:

Investment by the owner 100,000
Withdrawals by the owner (10,500)
Repayment of debt (2,000)
Net cash provided by financing activities 87,500
Net increase in cash P 36,500
Cash balance, April 1, 2012 0
Cash balance, April 30, 2012 P 36,500