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Picture

7.1 The Cash Flow Statement

The Cash Flow Statement (or Statement of Cash Flows if you prefer) is a requirement for reporting entities in many countries. It is a technical statement disclosing net cash flows in three areas:
  1. Operational changes (flows)
  2. Investment changes (flows)
  3. Financing changes (flows)

Similar to the way the income statement is a subset of the balance sheet, so is the Cash Flow Statement. Below is an example using Global Retail.
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If you are preparing a manual Cash Flow Statement, you start with the trial balance of the last two reporting periods (three if you don't have last year's Cash Flow Statement). The changes are calculated, adjusted to eliminate non-cash impacts and then placed into the three types of cash flows to be reported: operational, investment and financing.
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  • Home
  • Color-Accounting-Bootcamp
    • Benefits
    • 0. Introduction
    • 1. Funding Butterfly
    • 2. BaSIS Framework
    • 3. Classic Tx - v6.0X >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
      • Tx16. Pay supplier
    • 3. Classic Tx PizzaBox >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
    • 4. Summary learnings
    • 5. Business narrative
    • 6. Extenders
  • Virtual Learning
  • Teachers
  • Store
  • More
    • SeanStuff
    • Color Accounting
    • Curriculum Approach >
      • Menu page
    • Support
    • Gallery
    • LMS plans
    • Contact Us
    • Newsletter
    • Legal notices >
      • IP Rights