5.cash flow statement problem format

8/10/2019 5.Cash Flow Statement Problem Format

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Chapter:- 5

Cash Flow Statement[Model Problems]

Cash Flow Statements

Introduction

Cash Flow Statement is a statement that shows the flow of

-----cash ;and

-----cash equivalents

during a particular period.

In short,cash flow statement highlights the factors that bring

changes in cash position of an enterprise.

It is important to remember here that the Cash Flow Statement is prepar

according to the Revised ccounting Standard-! which requires that ca

flow is to be classified and shown in the Cash Flow Statement under t

following three"!# heads,namel$%-

i&Cash Flow From---------'perating ctivities

ii&Cash Flow From---------Investing ctivities.

iii&Cash Flow From--- -----Financing ctivities


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E%amples of *mportant4perating 'ti%ities:------2i3Cash reeipts from the sale ofgoods and the rendering of ser%ies.2ii3 Cash reeipts from ro#alties$fees$ ommissions and otherre%en"e.2iii3 Cash pa#ments to s"ppliers forgoods and ser%ies.

2i%3 Cash pa#ments to and on behalfof emplo#ees.2%3 Cash reeipts and ashpa#ments of an ins"raneenterprise for premi"ms and laims$ann"ities and other poli# bene(ts$2%i3 Cash pa#ments or ref"nds ofinome taes "nless the# an bespei(all# identi(ed with (naningand in%esting ati%ities$2%ii3 Cash reeipts and pa#mentsrelating in f"t"re ontrats$ forwardontrats$ option ontrats andswap ontrats when the ontrats

are held for dealing or tradingp"rposes.et.

!ows arising from*n%esting 'ti%itiesare: ------2i3 Cash pa#ments to a"ire(ed assets 2inl"dingintangibles3. +hese pa#mentsinl"de those relating toapitalised researh 6de%elopment osts and self

onstr"ted (ed assets.2ii3 Cash reeipts from disposalof (ed assets 2inl"dingintangibles3.2iii3 Cash pa#ments to a"ireshares$ warrants$ or debtinstr"ments of otherenterprises and interests in

oint %ent"res.2i%3 Cash reeipts from disposalof shares$ warrants$ or debtinstr"ments of otherenterprises and interests in

oint %ent"re.2%3 Cash ad%anes and loansmade to third parties 2otherthan ad%anes and loans madeb# a (nanial enterprise3.2%i3 Cash reeipts from therepa#ment of ad%anes andloans made to third parties2other than ad%anes and loansof a (nanial enterprise3.2%ii3 Cash pa#ments for f"t"reontrats$ forward ontrats$option ontrats$ and swapontrats e%cept !hen theontrats are held for dealing or

trading p"rposes or thepa#ments are lassi(ed as(naning ati%ities and2%iii3 Cash reeipts from f"t"reontrats$ forward ontrats$option ontrats and swapontrats e%cept !hen theontrats are held for dealing ortrading p"rpose$ or the reeiptsare lassi(ed as (naningati%ities.

2inl"ding PreferenShare Capital in tase of a ompan#3 aborrowing of tenterprise.E%amples o' cash o!s arisi'rom nancing activities are2i3 Cash proeeds from iss"

shares or other siminstr"ments.2ii3 Cash proeeds from iss"debent"res loans$ notes$ boand other short-or long-teborrowings and2iii3 Cash repa#ments of amo"borrowed s"h as redemptiondebent"res$ bonds$ preferenshares.

7.8o.

Problem 9eferene

7.1 *dentif# the transationas belonging to 2i3opretingati%ities2ii3in%esting ati%ities $2iii3(naning ati%itiesand 2i%3ash

e"i%alents.

1.Cash sales


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).Cash p"rhase/.9ent paid.Cash balane5.*nome ta paid;.4


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7.)7./7.7.5


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5.cash flow statement problem format

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