Cash flow -everything but the formulas

Cash flow statement layout

Cash from operating activities

Cash proceeds from

-cash from customers

-cash from other sources

Cash was applied to:

-cash paid to suppliers

-interest paid

-cash expenses

-tax paid

Cash from investing activities

Cash proceeds from

-Sale of PPE

Cash was applied to:

-Purchase of PPE

-Purchase of shares in company

Cash from financing activities

Cash proceeds from

-share issue

-loan/mortgage

Cash was applied to:

-repurchase of shares

-dividends

-repayment of mortgage/loans

Net in/decrease in Bank

Plus Bank (beg)

=Bank (end)

no depreciation on cash flow statement explanation

The cash flow statement only includes cash transactions. Depreciation of $xxx is a non cash expense. It will be reported in the Income statement as an expense, but since no cash changes hands it will not be reported in the cash flow statement. The entry for depreciation is DR Depreciation $xxx and CR Accumulated depreciation $xxx therefore no bank is involved.

difference between cash from customers in the cash flow statement and sales in the income statement

Cash from customers is $xxxx collected this year. It includes Accounts receivable beginning of $xx + Sales of $xx less bad debts of $xx, less Accounts receivable ending of $xx to show cash collected. Whereas sales of $xxxx in the Income statement represents all sales for the year whether it is collected in cash or not.

no land revaluation in cash flow statement explanation

The cash flow statement only includes cash transactions. In this case land has been revalued, not purchased so no cash changes hands. Land is increased by $xxx and land revaluation surplus is increased by $xxxx, bank is not affected.

no loss on sale on cash flow statement explanation

The cash flow statement only includes cash transactions. The loss on sale means the equipment sold for less than its carry amount is $xxx, so is therefore a non cash expense. Meaning it will not be reported in the cash flow statement.

difference between dividends received in the income statement and dividends received in the cash flow statement

Dividends received in Income Statement is the amount of Dividend income for the year $xxxx, whereas the cash flow statement shows the actual amount received in cash including Accrued dividend incomes form last year less any Accrued income for this year not yet received.

difference between tax expense in the income statement and tax paid in the cash flow statement

Tax in Income statement is the amount of tax for the year, whereas tax paid in the cash flow statement is the actual amount including Tax payable beginning less Tax payable ending.