Easiest Way of Preparing Cash Flow Statements
Friday, December 12, 2008
Basically Cash Flow Statement is the difference of figures for the current year with last year of Balance sheet.
For example for caluclating total cash flows inflow/(outflow) relating to current assets and liabilities we just deduct current year figures with the last year figures. The whole cash flow statement is prepared on the same basis. For preparing it you just follow the given instructions one by one from your excel sheet of Balance Sheet
1) Deduct current year figures of liability side from the last year figures.
2) Deduct last year figures of asset side from the current year figures.
3) Make necessary adjustements of those figures having impact in profit and loss account, however keep in mind that at the end the adjustments would not effect the difference of current year figures with the last year figures.
Labels: accounting
posted @ 2:26 PM,
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