How to Prepare a Cash Flow Statement: With Methods, Examples and Entries! Cash flow statement is prepared on the same lines as the funds flow statement, but strictly restricted to sources and uses of cash. Preparation of the statement is based on the opening and closing balance sheets, profit and loss account and other relevant information. Cash flow statement starts [...]
Here is a compilation of top three problems on cash flow statement with its relevant solution. Problem 1: Given below are Balance Sheets of Calcutta Jute Ltd. as at 31 -3-02 and 31-3-01. You are required to prepare Cash Flow Statement for the year 2001-02. Other Information: (1) Fixed assets costing Rs.1, 20,000, accumulated depreciation Rs.60, 000 were sold for [...]
In this article we will discuss about the uses and limitations of cash flow statement. Uses of Cash Flow Statement: A Cash Flow Statement is of primary importance to the financial management. It is an essential tool of short-term financial analysis. Its main uses are as follows: 1. Cash Flow Statement facilitates to prepare sound financial policies. It also helps [...]