Cash flow statement
How to quickly calculate cash flows using indirect method ...?
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Next - The example cash flow sheet below demonstrates how a cash flow statement can be made on the basis of balance sheet changes
- Such calculated cash flows need only to be adjusted for differences between balance sheet changes and the actual spending
- e.g. investing cash flows by change of investment liabilities; financing by changes of unrealised FX gains/losses
- the other side to the adjustment is an opposite adjustment to operating activities
| Cash flows | Closing balance | Impact on cash flows | Opening balance | ||
| A | Assets | ||||
| Fixed assets | |||||
| gross value | Investing | 1 200 000 | (200 000) | 1 000 000 | |
| depreciation | Operating | (500 000) | 100 000 | (400 000) | |
| Inventories | Operating | 400 000 | (50 000) | 350 000 | |
| Trade debtors | Operating | 250 000 | 200 000 | 450 000 | |
| Cash | Net cash flows | 250 000 | (150 000) | 100 000 | |
| TOTAL | 1 600 000 | 1 500 000 | |||
| Cash flows | Closing balance | Impact on cash flows | Opening balance | ||
| B | Equity & Liabilities | ||||
| Equity | |||||
| Share capital | Financing | 600 000 | 100 000 | 500 000 | |
| Retained earnings | Financing | ----- | (300 000) | 300 000 | |
| Net result | Operating | 200 000 | 200 000 | ----- | |
| Provisions | Operating | 50 000 | (100 000) | 150 000 | |
| Creditors | |||||
| Loan creditors | Financing | 550 000 | 150 000 | 400 000 | |
| Trade creditors | Operating | 200 000 | 50 000 | 150 000 | |
| TOTAL | 1 600 000 | 1 500 000 | |||
| Cash flow statement | |||||
| C | Statement of cash flows | ||||
| Operating | 400 000 | ||||
| Investing | (200 000) | ||||
| Financing | (50 000) | ||||
| Net cahe flows | 150 000 |
