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Home Statement of Cash Flows Format and Sections of Statement of Cash Flows
 
 

Format and Sections of  Statement of Cash Flows:

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A statement of cash flows has three sections. These are:

  1. Operating activities section

  2. Investing activities section

  3. Financing activities section

Operating, investing and financing activities constitute the general format of statement of cash flows. The cash flows from operating activities section always appear the first, followed by the investing section and then financing activities section.

The individual cash inflows and cash outflows from investing and financing activities are reported separately. That is, they are reported gross, not netted against one another. Thus, cash outflow from the purchase of property is reported separately from the cash inflow from the sale of property. Similarly, the cash inflow from the issuance of debt is reported separately from the cash outflow from its retirement.

The net increase or decrease in cash reported during the period should reconcile the beginning and ending cash balances as reported in the comparative balance sheets.

the skeleton format of statement of cash flows is prepared as follows:

Company Name
Statement of Cash flows
Period Covered

Cash Flows from Operating Activities:    
     Net income   xxx
     Adjustments to reconcile net income to net cash provided by operating activities:    
          (List of individual items) xx  
 

     Net cash flow from operating activities   xxx
     
Cash Flows from Investing Activities:    
     (List of individual inflows and outflows) xx
 
 
Net cash provided (used) by investing activities   xxx
     
Cash Flows from Financing Activities:    
     (List of individual inflows and outflows) xx  
 
 
     Net cash provided (used) by financing activities   xxx
   
Net increase (decrease) in cash   xxx
Cash at beginning of period   xxx
   
Cash at the end of the period   xxx
   

The above format is used when a statement of cash flows is prepared using indirect method. When direct method is used the operating activities section of the statement of cash flows is prepared in a different way. Click here to understand the format under direct method.

More study material from this to
 

More study material from this topic:

Definition, Explanation and Purpose of the Statement of Cash Flows
Classification of Cash Flows
Format and Sections of Statement of Cash Flows
Steps in Preparing Statement of Cash Flows
Statement of Cash Flows - Direct Method
Statement of Cash Flows - Indirect Method
Direct versus Indirect Method of Cash Flows

 

A D V E R T I S E M E N T

 

Financial Accounting Topics


  Introduction to Accounting
 ----------------------------------------------------------------------------
  Transactions and Accounting Equation
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  Analysis of Business Transactions
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  Journal, Ledger and Trial Balance
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  Accounting for Bills of Exchange
----------------------------------------------------------------------------
  Special Journals
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  Cash Book
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Bank Reconciliation Statement
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  Final Accounts
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  Work Sheet
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  Capital and Revenue Items
----------------------------------------------------------------------------
  Valuation of Inventories
----------------------------------------------------------------------------
  Accounts of Non-profit Making Organizations
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  Statement of Cash Flows
----------------------------------------------------------------------------
  Accounting Ratios Analysis
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  Depreciation, Provisions and Reserves
----------------------------------------------------------------------------
  Accounting Dictionary
----------------------------------------------------------------------------
  Financial Calculators
 
 
 
Managerial Accounting Topics

  Financial Statements
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  Cost Volume Profit Relationship
----------------------------------------------------------------------------
  Variable Costing System
----------------------------------------------------------------------------
  Materials and Inventory Cost Control
----------------------------------------------------------------------------
  Activity Based Costing System
----------------------------------------------------------------------------
  Standard Costing and Variance Analysis
----------------------------------------------------------------------------
  Balanced Scorecard
----------------------------------------------------------------------------
  Capital Investment Analysis/Capital Budgeting
 

 

 

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