From the following profit and loss account of Samarth Ltd., calculate net cash flows from operating activities.
From the following information extracted from the book of Max Ltd. for the year 2019-20, calculate net cash flow from investing activities.
Additional information is given as follows:
Note: $190,000 indicates cash outflows are more than inflows.
You received the following information from Hema Enterprises Pvt. Ltd. Calculate the net cash flow from investing activities.
Information relating to assets sold during the year 2020 is given as follows:
Note: Cash outflows are more than cash inflows ($410,000).
From the following information acquired from Tarapoore Ltd., calculate net cash flows from financing activities for the year 2019-20.
Note: Interest on debentures paid during the year was $30,000 and on bank loan $40,000.
Base Ltd. provides the following information to you. Calculate net cash flows from financing activities for the year 2019-20.
Further information is given as follows:
You can also check:
The Cash Flow statement is an integral part of the Financial Statements. It shows the amount and timing of money in and outflows, i.E., Cash received and paid to suppliers, employees, investors, etc. It also shows changes in the balance sheet (other than equity). The Cash Flow statement reports how much cash was generated or used by the firm, not how much profit was made.
There are three Cash Flow types that companies should track and analyze to determine the liquidity and solvency of the business: Cash Flow from operating activities, Cash Flow from investing activities, and Cash Flow from financing activities.
The Cash Flow statement tells you how your company got its cash balance at the beginning of the period compared to the end.
There are two ways to prepare a Cash Flow statement: the direct method and the indirect method.
The most important part of a Cash Flow statement is net incom, because it shows how much money a company earned during a given period.
About the Author
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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