8/8/2019 Final Presentation of Cash Flow

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PRESENTATION ON CASH FLOWPRESENTATION ON CASH FLOWSTATEMENT ANALYSISSTATEMENT ANALYSIS

PRESENTED TO

Prof. Bhavik Panchasara

PRESENTED BY

TORNADO Group

GROUP MEMBERS

1. Nisha Gondaliya

2. Janvi Badiyani

3. Megha Bavishi

4. HardikBhadeshiya

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INTRODUCTIONINTRODUCTION

CashCash includesincludes notnot onlyonly currencycurrency onon handhandbutbut alsoalso demanddemand depositsdeposits withwith BanksBanksoror otherother FinancialFinancial InstitutionInstitution. .

AllAll BusinessBusiness transactiontransaction ultimatelyultimately resultresultintointo cashcash InIn flowflow oror CashCash outout flowflow

InIn orderorder toto understandunderstand conceptconcept of of CashCashFlowFlow StatementStatement we we areare requiredrequired to toclearclear thethe fundamentalfundamental of of suchsuch aastatement,statement,

Cash Budget

Cash Flow Statement

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DEFINATIONDEFINATION

CashCash FlowsFlows areare InIn FlowsFlows andandOutOut FlowFlow of of CashCash andand CashCashEquivalentsEquivalents. . ItIt meansmeans thethemovementmovement of of cashcash intointo thetheOrganisationOrganisation andand movementmovement of of cashcash outout of of thethe OrganisationOrganisation. .

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DATA REQUIRED FOR DATA REQUIRED FOR PREPARATION OF CASH FLOWPREPARATION OF CASH FLOW

STATEMENTSTATEMENT

Comparative Balance Sheets.(i.e. the data of current yearas well as of previous year).

Profit & Loss Account.

Additional Data( i.e. Adjustment )

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Efficient Cash Management

Useful for Financial Management

Information about Cash Receipts andCash payments

Useful for Internal Controls

Ease in obtaining Funds

USES OF CASH FLOWUSES OF CASH FLOW

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LIMITATION OF CASH FLOWLIMITATION OF CASH FLOW

Misleading inter industrycomparision

Misleading inter Firm ComparisionMisleading comparision over aperiod of TimeInfluenced by changes inManagement policiesProfitability can not be measuredMismatch with income statement

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CLASSIFICATION OFCLASSIFICATION OFCASHFLOWSCASHFLOWS

(1) Cashflows from operating activity

(2) Cashflows from investing activity

(3) Cashflows from financing activity

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CASHFLOWS FROM OPERATINGCASHFLOWS FROM OPERATINGACTIVITIESACTIVITIES

Sale of goods

Rendering of services.

Other Revenue like royalties & fees.

Payments to suppliers for goods

Payment to employees

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CASHFLOWS FROM INVESTINGCASHFLOWS FROM INVESTINGACTIVITIESACTIVITIES

Cash payments to acquire fixed assets

Cash receipts from disposal of fixedassets

Cash payments to acquire share & warrants of other enterprises

Cash receipts from disposal of shares & warrants of other enterprises

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Cash advances & loans made tothird parties

Cash receipts from therepayments of advances and loansmade to third parties.

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CASH FLOWS FROMCASH FLOWS FROMFINANCING ACTIVITIESFINANCING ACTIVITIESCash proceeds from issuing Shares

Cash proceeds from issuing Debentures

Redemption of Debentures, Bonds etc

Cash payment to redeem preference

sharePayment of dividend

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ASCERTAINMENT OF CASH FROMASCERTAINMENT OF CASH FROMOPERATIONSOPERATIONS

ADD : IN PROFIT BEFORE TAXIncrease in Current Liabilities

Decrease in Current Assets

Less : FROM PROFIT BEFORE TAXIncrease in Current AssetsDecrease in Current Liabilities