Cash Flow Accounting Statement

A cash flow accounting statement is a report of cash flows, both in and out of any business account or individual’s account. The aim of a cash flow accounting statement is to analyze the potential to generate cash flows, and evaluation of monetary transactions of an account. It is the key accounting report that is prepared annually. Cash flow in a business can be in either direction: cash flowing in to a business or cash flowing out of a business. The statement is supposed to portray that accordingly.

Sample Cash Flow Accounting Statement:

The statement is in four parts: firstly, cash flows relating to operations, secondly, cash flow from investing activities, thirdly, cash flow from financing activities and lastly, net increase or decrease of cash.

Cash flow statement of ABC business for the year ended 31st of December 2011

NET CASH FLOW FROM OPERATING ACTIVITIES $

CASH FLOW FROM OPERATING ACTIVITIES

Customers’ cash receipts                                                                                            80,000

Salary paid to distributors and employees                                                                (50,000)

Money generated from operations                                                                              20,000

Dividends Received* 200

Received interests                                                                                                            500

Paid interests                                                                                                                 (500)

Paid taxes                                                                                                                    (2,400)

Net cash flow from operating activities                                                                      24,700

CASH FLOW FROM INVESTMENTS

Additions to accessory                                                                                                (2000)

Replacement of accessory                                                                                           (7000)

Proceeds** from sale of accessory                                                                                400

Net cash flow from investments                                                                                 (8600)

CASH FLOW FROM FINANCIAL TRANSACTIONS

Cash received from capital contributed                                                                         3000

Cash received from loan                                                                                              15000

Loan payment                                                                                                              (5000)

Net cash flow from financial transactions                                                                  13,000

NET INCREASE/DECREASE OF MONEY 25,000

Cash at the starting of the period                                                                                  2,500

Money at the end of the period                                                                                   27,500

*Dividends are cash payouts to individuals who have purchased shares in the company.

**Proceeds means cash received.

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