AccountingBasics英语会计基础教学课件-精品文档46页

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Format of the statement of cash flows
COMPANY NAME Statement of Cash Flows
Period covered
Cash flows from operating activities (List of individual items)
• What was the cash used for during the period? • What was the change in the cash balance during
the period?
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Usefulness of the statement of cash flows
(List of individual inflows and outflows)
Net cash from (used by) financing activities Net increase (decrease) in cash Cash at beginning of period Cash at end of period
Transactions between a company and its owners or between a company and its longterm creditors. Examples include:
Cash inflows from…
Cash outflows to…
Issuing shares and other
• Helps investors, creditors and other interested parties to evaluate the following about the entity:
• Ability to generate future cash flows • Ability to pay dividends and meet obligations • Reasons for difference between profit and net
equity instruments
Buy back shares
Issuing bonds and other Repay bonds and other
borrowings
borrowinБайду номын сангаасs
Pay dividends (cash dividend)
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Significant non-cash activities
cash provided (used) by operating activities • Cash investing and financing transactions for the
period
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Classification of cash flows
LO2
• Operating activities
TOTAL REVENUE
527,500
Cost of goods sold
276,300
Depreciation – plant & equipment
38,500
Other expenses
135,000
TOTAL EXPENSES
450,500
PROFIT BEFORE TAX
77,000
Income tax expense
• Examples include …
• Issue of shares to purchase assets • Conversion of bonds into shares • Issue of debt to purchase assets • Exchanges of PPE assets
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CHAPTER 18 THE STATEMENT OF CASH FLOWS
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• Indicate the usefulness of the statement of cash flows
• Distinguish among operating, investing and financing activities
Acquire non-current assets (PP&E, intangibles, share investments)
Repayments of loans advanced to other parties
Lend money to other parties
Financing activities
Listed elsewhere in the financial statement Material non-cash investing and financing activities (List of individual non-cash transactions)
xx xxx
xx xxx
A Ltd Statement of Comprehensive Income for the year ending 30 June 2019
Sales revenue
520,000
Interest revenue
4,300
Gain on sale of plant & equipment
2,500
• Significant financing and investing activities that do not affect cash are not reported in the body of the statement of cash flows, but are disclosed elsewhere in the financial statement
xx xxx
xxx xxx xxx
xxx
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Preparing the statement of cash flows
There are 3 sources of information to prepare the statement of cash flows:
1 Comparative statements of financial position 2 Current income statement 3 Additional information (about transactions that
•Current asset and current liability transactions normally result from the operating activities of a company, such as buying and selling merchandise.
Investing activities
occurred during the period)
Preparing the statement of cash flowsExample
The following information has been provided on the following slides in relation to A Ltd for the year ending 30 June 2019:
43,500
53,400
Dividend payable
20,000
15,000
Share capital
250,000 450,000
Retained earnings
148,300 157,800
Total liabilities & equity
621,000 744,000
The acquisition/disposal of long-term assets and other investments during a financial period. . Examples include:
Cash inflows from…
Cash outflows to…
Sale of non-current assets (PP&E, intangibles, share investments)
• Financing activities
• Cash effects resulting from long-term borrowing and shareholders’ equity
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Operating activities
•Are transactions involving the acquisition or production of goods and services and the sale and distribution of these goods and services to customers.
Statement of comprehensive income Statement of financial position Additional information
Required: Prepare the statement of cash flows of A Ltd for the year ending 30 June 2019 (using the direct method of disclosure for cash flows from operating activities)
744,000
A Ltd comparative Statement of Financial Position
2019
2019
Bond payable
120,000
36,700
Accounts payable