Cash Flow Statement

Acash flow statement（CFS）是一项财务报表，显示在特定时期内现金交易。这是three main financial statements, the other two being thebalance sheet和收入证明。

CFS是一项声明，可在财政年度提供所有现金流出的总数。它显示了钱的花费或寄出的位置。它是将损益表与资产负债表连接起来的工具。

Financial Statement:Cash Flow

Financial statementsare official documents that measure a company'sfinancial healthby gauging its liquidity, profitability, and overall soundness. There are three main financial statements:

• 资产负债表
• Income Statement
• Cash flow Statement

CFS包括公司所有与现金相关的活动的总体。例如，它显示了公司的现金活动（流入/流出）或货币转移的位置。

For a working professional, business owner, entrepreneur, or investor, knowing how to read and understand a CFS enables them to extract essential data to gauge a company's financial health. This allows them to overall make more sound decisions.

对现金流陈述感兴趣的人和团体包括：

• Accounting personnel
• Current and potential creditors
• 当前和潜在的投资者

The Layout of a Cash Flow Statement

Like every other financial statement, the CFS has a fixed structure. It is presented in a manner so that the inflows and outflows of cash are classified into three standard activities:

1. Operating
2. Investing
3. Financing

关于现金运动categor所有活动ized under these three distinctions, which help users assess how efficiently a firm has allocated cash resources.

Cash Flow Statements contain the following titles for each of the three cash flow categories:

1. Cash Flow from Operating Activities
2. Cash Flow from Investing Activities
3. 融资活动的现金流

Operating Activities

运营活动是公司的主要创收活动。这些活动包括影响企业日常活动的交易和活动。这是净收入的总和，非现金费用以及working capital。

The cash flow arising from these activities is called "Cash Flow from Operating Activities".

例子：

1. Cash receipts from:
   1. 商品出售和服务的渲染bobapp下载链接化管理
   2. 特许权使用费，费用，佣金和其他收入
   3. 债务人和账单应收账单
2. Cash payments:
   1. Involving purchase of goods and services
   2. Wages, salaries, and other payments to employees
   3. Income tax paymentsor refunds (unless they are related to financing and investing activities)

投资活动

Investing activities involve purchasing and selling long-term assets such as lands, buildings, factories, machinery, investments, etc., that are not consideredcash equivalents。

Cash flow from investing activities shows the expenses incurred for assets intended to generate cash flows in the future. It also involves receipts from the sale of these assets when they are no longer of any use to the firm.

Examples include:

1. Cash receipts:
   1. From the sale of fixed assets (includingintangibles like copyrights，商标等）
   2. From the sale of shares, warrants, or debt instruments of other enterprises (other than receipts of those instruments that are considered to be cash equivalents)
   3. From the repayment of advances and loans made to third parties
   4. 从涉及事故的财产的保险索赔中
   5. 从债券的利益和股票股息
2. Cash payments:
   1. For acquiring fixed assets
   2. For acquiring shares, warrants, or debt instruments of other enterprises
   3. For advances and loans made to third parties

融资活动

CFS中的融资活动显示了一家公司如何从资本市场筹集资金以偿还其投资者。

These activitiesaffect the capital structure公司的作品：

• Adding or revising loans
• Issuing and/or selling more stock
• Paying cash dividends

活动包括：

1. Cash Receipts:
   1. To issue shares or other similar instruments
   2. 用于短期或长期借款（例如发行债券，债券，贷款等）
   3. 增加银行透支的余额或现金信用limits.
2. Cash Payments:
   1. 为了回购股权股票
   2. 为了redemption of preference shares
   3. 为了repayments of short-term and long-term borrowings (including paying back debentures, bonds, loans, etc.)
   4. 对于临时股息和上一年的拟议股息
   5. For interest on short-term and long-term loans, bank overdrafts, and cash credit
   6. For preliminary expenses such as registration fee, stamp duty, legal fee, etc.
   7. 对于银行透支或现金信用限额的余额的任何减少

Cash and Cash Equivalents

"Cash" consists of cash in hand (accessible cash) and demand deposits (with banks). Demand deposits are deposits of money that can be withdrawn without any notice (e.g., a current account).

另一方面，现金等效是短期投资that are easily convertible into cash. As a result, they are highly liquid and carry a minuscule risk of change in their value.

Examples of cash equivalents include:

• 货币
• Treasury bills
• Commercial papers

这些是在需要立即需要后剩下的现金购买的。

通常，只有在其成熟期短的情况下（比其收购时间为90天），只有在其成熟期短时间内将投资称为现金。除非认为现金同等物质，否则对股票的投资被排除在现金等效因素之外。

对公司的投资preferred shares只有在购买之日起90天内可赎回的情况下，才能将其视为现金同等用品。结果，总是有风险，即在其成熟时无法偿还投资。

因此，现金和现金等价物的总和包括：

1. Cash in hand
2. Cash at the bank
3. 短期投资或可销售证券
4. Cheques and Drafts on hand

在现金流下的利息和股息处理

There are different ways to prepare a CFS underIFRS和GAAP原则。

IFRS代表“国际财务报告标准”，其中包括一组规则，使财务报告在全球范围内保持一致和可比性。

GAAPstands对于“普遍可接受的会计原则”。它在美国使用，其中包括一组遵循准备财务报告的规则。

利息和现金流：

Under GAAP, interest paid and interest received are classified as operating activities.

On the other hand, IFRS allows a firm to choose its policy for classifying interests based on what it considers appropriate.

• 支付的利息可以在运营活动或融资活动下记录。
• 收到的利息可以在运营活动或投资活动下记录。

Dividend and Cash Flow:

Like interest, there are different standards for recording dividends between GAAP and IFRS.

在GAAP下，支付的股息记录在“融资活动”下，而收到的股息应记录在“经营活动”下。

Subsequently, under IFRS protocols, companies choose how they would prefer to categorize their dividends.

• Dividends paid are recorded under either operating or financing activities.
• Dividends received are recorded under either operating or investing activities.

Disclosure of Non-Cash Activities

Non-cash activities do not involve cash transactions but are recorded in the收入证明。这些活动影响资产对资产负债表的价值。

Non-cash activities include:

• Depreciation
• Amortization
• 未实现的收益
• Unrealized loss
• 递延所得税
• Stock-based compensation, etc.

Let's look at an example of depreciation.

Depreciation, in simple terms, can be defined as the loss in value of an asset over its course of life due to usage, wear and tear, etc. It involves the allocation of an asset's cost over its useful life.

Examples of depreciable assets include buildings, plants, machinery, vehicles, etc. The land is the only exception, as land value appreciates over time.

虽然折旧是用于固定资产的，但另一方面，摊销的价值损失随着时间的流逝无形资产。

可以摊销的资产的示例包括专利，商标，版权等。

Calculating Cash Flow statement

There are two ways of calculating CFS:

• 直接方法
• 间接方法

直接方法

仅计算现金交易（例如现金支付和收据）cash flow statement在直接现金流量法中。

This method ignores all assumptions and does not consider the impact of non-cash transactions (e.g., depreciation).

使用直接现金流量方法时，准备CFS会花费更少的时间，因为它忽略了所有假设，并且不依赖调整。

However, for this very reason, it is not popular in the accounting industry and is used less by organizations and businesses alike.

间接方法

The indirect method of cash flow is complex compared to the direct method asit uses net incomeas the base, recognizes the necessary adjustments needed, and considers the impact of non-cash transactions.

在这种方法中，通常将折旧（非现金交易）添加到净收入中。

现金流量示例

Given below is the CFS of ABC Ltd. company for the year ended on December 2021:

ABC Ltd.
Cash Flow Statement
截至2021年12月的一年
(Allfigures in USD)

As you can see, the first part of the statement calculates theCash Flow from Operating Activities。

以净收入为基础，我们添加非现金交易（折旧） +非运营活动交易（利息） +更改working capital。

这些价值的总和给了我们经营活动的现金流。(which equals $103,800 here).

Note that interest paid is not an operational activity。Therefore, we add the non-operating transactions back to the net income to calculate the true cash flow from operating activities.

语句的第二部分计算Cash Flow from Investing Activities。We add the cash received from the sale of non-investments and deduct the cash paid to购买固定资产。

The sum gives us Cash flow from Investing Activities which is $(186,000), which means a negative balance showing cash outflow.

The third part calculates theCash Flow from FinancingActivities。通过发行收到的资金股票和抵押loans are added, while the cash paid for the redemption of debentures and dividend payments are deducted.

这笔款项为我们提供了总数融资活动的现金流等于$ 92,200。

In the end, we add the three calculated cashflows to get the net increase in cash andcash equivalents。

When added to the previous year's cash and cash equivalent balance, this amount should match the current year's cash and cash equivalent balance.

重要性

由于以下原因，现金流量声明至关重要：

1. Useful for short-term planning:

它提供了用于计划公司短期财务需求的信息。

Since it provides information regarding the sources and utilization of cash during a period, it becomes easier for the management to assess if a company has a healthy cash flow.

For example, the management checks if the company has adequate cash to:

• Meet its day-to-day expenses
• Pay the creditors on time
• 支付长期贷款和利息
• 如果有足够的现金来购买固定资产

2. Useful in preparing the cash budget:

可以在预计的CFS的帮助下准备现金预算（为未来时期准备的声明）。现金预算有助于告知管理现金盈余或赤字期。

For example, in the months in which cash receipts exceed payments and months in which cash payments exceed the receipts, the projected CFS helps fill those deficits with the surplus of funds and vice versa.

3. Comparison with the cash budget:

在年初准备现金预算。相比之下，财政期末（通常一年）准备了CFS。

A comparison of the two gives insights into how a firm's financial resources have been generated and utilized according to the budget. First, the differences between the two can be analyzed. Then, measures can be taken to correct them.

4.研究现金收入和付款趋势：

现金流的声明揭示了从贸易应收款，库存和other current assets和速度at which current liabilities正在付款。

它使管理层能够评估未来现金的真实位置。

5. Elucidate cash deviations from earning:

A profit-making company can have a lot of cash, or, when it suffers a loss, it may still have plenty of cash. A cash flow statement explains the reasons for it.

6.从各种活动中分类现金流：

The CFS aims to highlight cash flows from operating separately, investing, and financing activities. The amount of cash that has been generated or allocated in such activities is explained by CFS.

7. Aids in determining dividends:

管理层使用CFS确定可用于股息支付的经营活动产生的现金。

8. Tests managerial decisions:

Sources of long-term funds should be used to purchase fixed assets. These sources include:

• 股票，债券，债券发行bonds,
• taking long-term loans, etc.

The CFS shows whether the management has used these funds efficiently and whether these funds can be reimbursed using the cash generated from operating activities. Therefore, it is generally preferred to follow this policy.

9. Useful to outsiders

CFS可以帮助投资者，债券持有人，银行家，贷方，信贷等，以分析企业的财务状况，以便他们可以做出更多的合理决定。

Limitations

1. Not suitable for judging the liquidity:

CFS does not represent the true liquidity of a firm as liquidity is comprised of both cash and assets that can be converted into cash easily. Examples include marketable instruments, bonds, etc. Excluding these assets prevent accuracy in reporting a firm's liabilities.

2.窗户敷料的可能性：

The possibility of窗户装饰（操纵图中的数字财务报表the firm look attractive to the investors) is higher in the case of a firm's cash position than a firm's working capital position.

通过推迟购买和其他付款，可以通过在资产负债表日期之前从债务人那里快速收取现金来轻松操纵现金余额。

3. Ignores non-cash transactions:

CFS ignores non-cash transactions such as:

• Purchases of fixed assets through the issuance of shares or debentures
• Conversion of debentures into shares
• 发行奖金股票。

Thus, the true position of an enterprise cannot be valued solely through a cash flow statement.

4.忽略会计的应计概念：

CFS准备现金的基础上,这意味着它忽视s one of the basic concepts of accounting, namely the accrual concept.

The accrual concept in accounting allows an organization to record the revenue of a good or service when the transaction occurs as opposed to when the good/service is received.

5.不能代替收入证明:

A cash flow statement does not take into account the non-cash items. Therefore, net cash flow does not mean the net income of a business. Instead, the net income of the business includes income from cash and non-cash transactions.

6. Historical in Nature:

根据过去的年份准备了现金流量。因此，如果预计的CF伴随它，则显示的信息将更有用。

由AQSA WASIF进行了研究和撰写|LinkedIn

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