the Cash Flow Statement
A cash flow statement is a financial report that describes the sources of a company's cash, detailing cash inflows and outflows over a specified time period. It is useful in assessing the amounts, timing, and uncertainty of cash flows.
Provides answers to
- Where did the cash come from
- What was the cash used for
- What was the change in cash balance
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The Sections
- Operating activities
- Investing activities
- Financing activities
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Sources of Information
- Comparative balance sheet
- Current income statement
- Selected transaction data
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| Entity Name |
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| Statement of Cash Flows |
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| For the period Ended date |
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| Cash flows from operating activities |
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| Net income |
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$ 320,750 |
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| Adjustments to reconcile net income to net |
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| cash provided by operating activities |
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| Depreciation expense |
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$ 44,200 |
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| Amortization expense |
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14,500 |
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| Gain on sale of plant assets |
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(3,600) |
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| Increase in accounts receivables |
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(14,560) |
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| Decrease in inventory |
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18,300 |
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| Increase in accounts payable |
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1,200 |
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93,040 |
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| Net cash provided by operating activities |
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443,790 |
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| Cash flows from investing activities |
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| Sales of plant assets |
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33,000 |
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| Purchase of equipment |
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(215,000) |
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| Purchase of land |
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65,500 |
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| Net cash used by investing activities |
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(116,500) |
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| Cash flows from financing activities |
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| Payment of cash dividend |
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(22,000) |
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| Issuance of common stock |
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100,000 |
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| Redemption of bonds |
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(30,000) |
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| Net cash provided by financing activities |
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48,000 |
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| Net increase in cash |
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327,290 |
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| Cash at beginning of year |
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25,500 |
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| Cash at end of year |
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$ 352,790 |
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| Non-cash investing and financing activities |
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| Purchase of equipment through issuance of $25,000 of bonds |
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