Preparing Statement of Cash Flow
One of the most complicated topics to accounting/finance candidates is discussed here in details to make the preparation of this statement clear, easy and interesting.
Statement of cash flow: Definition and illustration
- What a statement of cash flow is.
- Why the statement of cash flow is prepared.
- When the statement of cash flow is prepared.
Presentation of a SCF
- Cash Flow from operating activities
The direct method.
The indirect method. - Cash Flow from investing activities.
- Cash Flow from financing activities.
Adjustments to Net Income
- Supplemental schedule.
- Limitations of the SCF.
- Common errors in practice.
Related issues that will be discussed during the workshop
- Cash and Cash Equivalents.
- Foreign currency and Difference of exchange.
- Realized and unrealized difference of exchange.
- Value added Tax and Other income taxes.
- Gains/Losses.
- Proceeds resulting from selling fixed assets.
- Depreciation/Amortization.
- Interest Income/Interest expense.
- Loans given/taken.
- prepayments and accruals.
- Accounts Receivable.
- Inventory/Supplies.
- Long term Investments.
- Notes Payable.