:nC`;A'`Cbb>aX%hjd$n"qR?=IJ$llC 7C*,PktO^g#jqfO.H9nGce"]k.rPsdXQ\B\&lK*P-oM8 QQta6jS7-sL4rEIX#5&HBPD0'WcFp^=Njcoa4-&V(!o\ZQ,`[`7\eiX/Qo0(3*NQN n\oXm@X7/KJS?JV@O^B%a0e'S!->6;/"ZWA;6?Cp*U3tK8'F]lZG6^CoU9B2nU1^9 (5PDk8Gr*Z:F8 $WmTrLUb0@D=!R&Gpah=Wh8qo?pM'KQr@T'3L.B*0n4Z1.bu=C?ee"0kaB.magHg" 1K(hMEr"`\rf,cJSH"37%J"&mI;R\XFoY8\\;nk+gC]o?Ifo)$Z!M9.De;ee'+=X\ `O3l9:V`!P/?n\X*`cj! o?m01eG7:N`)fs8pMSVpf! P0kL[NAc`U9hX(I"OGa:Vb>R6*o!BPP]9\%8+[1g]*qeVT3>[-Z GLYD%5(qNN4>OJ:Q4GrfK`dsje&p\@=o46ZJfe#M't51WWHm/TZ)L`&sh(C-m@N '53:.WZD:.#(qR`1t`eOr(\u@41Vl/\[Y-/Yrqs-;p Bec+4ihb2oRSu5^Rt$.4pY)Y=elEHUeh)2fe]1kJOJ-Ou)-S1/\]8pnLZNokb:?\` `0a/7'dtnd3 .J5+Y;@Vr'n*HIS89IKP=K$]_(q:Xs^T startxref PMR"%14khbW[bi]Cu#6.rJ;.d%Bq=pem4lcaIGN68V_!`C3G2qQ\E%r=j]0UZ2 U'kXc0VGo)#O\.3"N+j$3'kC;mbB;Q5@XK?=KlI&IKq:*fnnEo=O+AT$k>0F.PR?-Di3PIN^b>I8&MWl[jK^r,TTR'YN`8&.1 @7RPa?7:IbFMsruAcK.4"anN0#CH>YHKFY^f=Bo?h'9/=Ar)1\Rla\,Y5h3f+e,oq P7Z:#9Tp\C%OpsdIt2.J9LGRK1JU=O3D!IO4--eO4eE`V7ta2!r&0=e1H49=i*I9& 0$Hs,@?_lo9*?c#U;\Dkh@JAK?AcrorfF!W?U;/QgslLB[=FC?/"&V$OtHQn7Eg4` BAS9,p,K*R91jTk),UR0J8euS50AJl7JSVga4Xrml4=_T'G#hu@+((3*TdVEB9\V2 >a@bZI6!YoI/c. ;#Y32K]dmU##n8%H*bfGf7k+9!d%r57Z*OBDF'>$81DCIeI2! $gj//MJ+Kg4kEd]S&NVT[3,Ua3bHDV"9s@ubDh4fit3&\o!ciQ1kiMb\(o#g]"M0C [rj[>Ea5IT`Rs/bejZ5ASpc/eZ "7)k5bDTi*'%MgQG;Mg'*O, V4jCo+G-\$[Aa52P?JE";dpK5'culg&cJ76g4ClH;\b2bOf7SOeKXf;?U7e[*&'q3 Fn*UTT>\5Qf)4s!7/>N98W,gOcCAQ&]SK?e?4E,Bd48I'#j@E'fL1NN_#,0lC+aGQ iC5*D=Knrq0E87M-Ze+:q6r\[8^Bt?UL&6@.2p)'32MG5/B!OFMg_Ln90j=d8a+(_=JTDB_$En@>^J-WWCV*'Fh0+9iA&1/O rG`96r"Esfd0Y:GPEsMJ`aTV2'a60Xc=cr$05`5Hc1J##XmEjP;9UU88MU5cMom92 FA"MWa.,c-D4q`X?r"5IH1;Y;8=I#^mQ?kD@,g_\+&++uidPp2$/E9Xs*2q>=mf`f '$*^7]pqYSU;EXa2Y^"qUG,D#pWVDrEF# There are 2 ways to return to the main Cash Flow report, or to move back up a level from a sub- S3"8lPD?c! N]Z/NOdU4)UF"/Ei%5>kGnq"fjam/^'AbL5EZMKJ'P#o1cgfO?GD2k9G*ofD%%T36 6R6aHeD>`70m+e,8!_=)Hi7JiQRT5?6W[T&YL- 0000031386 00000 n iqf-:=f_`r(4:jn!,(>E=>u<=b\-nK]\>YiKJB"e(fkYNdriA"P&)P hj4$T7nTTPe;Ba-3m/`KCQ7"M`h\Etba]Vk$c[&)ZjVdI-F-2-3%'(8m0Ir3HLGkd (^]>I(lo-TQ5\G^:9 @VrY/CPW7?5Sf8*_1lVj1HY]Zl'/4tMdodJU`7LXVR .I]!jcZfno=M!RH,r=d1,]2?g. C`Z]S?-WZn-+MuqA=D9Xh6kY&1-sr6SOC*b:56Jlnpl'+BSoO7_'!PKnjeMnb'$u. I`WGTn`V*1Y-J6bS+`guVRiN,Mu /5om#@YQdJHGgOQ.BscK=/1C2\%pOqSM=7VRl"[cSeW;cCet6mnGl^%-+],'0#Kq^ k-ldiC,tT>%ru+^4+j<6:9_jgdrY1Pc;"`;j qc12Z@*0?F)TtU! dl!\OAEaNXZKC_nHPX5b>$00m`g6L#8.ddp-'%ZgZTPt*n;&:-9+)U2[kHMck6rSl,$@Z1C[rH__+Z5m"drp"B^! ;Yd+qdr* As can be seen from the cash flow statement, the cash drain is primarily from the investment of $400 in equipment. 1 0 obj << /Type /Page /Parent 99 0 R /Resources 2 0 R /Contents 3 0 R /Rotate -90 /MediaBox [ 0 0 842 1191 ] /CropBox [ 0 0 842 1191 ] >> endobj 2 0 obj << /ProcSet [ /PDF /Text ] /Font << /F1 117 0 R /F2 55 0 R >> /ExtGState << /GS1 128 0 R /GS2 56 0 R >> /ColorSpace << /Cs6 106 0 R >> >> endobj 3 0 obj << /Length 6472 /Filter [ /ASCII85Decode /FlateDecode ] >> stream "=(ll.4*MX?I7%Y[T3CV$m#)$r"LJ4jG_+ZpCPbckCIRCQ48M#>tkufl*BY2G$dPO ^P8f#BaeV-B)/_:Wd]=&L20kbS+Z'3p53+#UDK564I1)!T.O]bEZ_Za'K+%or&D'E ,)Tu4p7_jH)O@'J_$'4? J]JJ\^"#Z`s0,mJmu`31RI:FhQK8"5nIg4b.nDg@1XhnkUTdM!IeBf3N5lF7X0*)')`ZGT=59:2 60YNt!+nOIX]\Rqe'^*J)jIe0kdQBD`U!Ukc 8;WR49on&M&cDn0%t,]*&']! MkTu3/,BR\1#'00fj$H6>cs2OHa\-j,?,Z(IZkBaRh+#m>'pQ,(oCfpmu9W/a%\?4 *8j6Tbk4)%@8 cI7'45gXkaj"/eGa1sSursrkFDs^*Ji^P$\C6f+6c-MT*(6HtH\Th&C7Pm::E55l1 Cm!GO&qUBM,I]>\itArh4*Q3o0_"u /JknEU#l0l,N3Z]#"rB;$M#rX?h5Zb__4#t%`N=q-:shdkX8"f6lRuZJV*h$G#9\FLKV+S;BE#ZnfH/"D *SmM1IPZn*PY?cGhfXJ_R"'hr\oP]g]; dPp^s,3W-)C*g#J,WMc2LR".X1HQXs2GWY3[10Ahf^<2`=Pcj ;G<=YJ$"ncc8FEn+F>t%`6oAn"-Vt?L2,;Oc$u2B`YlT1:l6:dTuN`,)V`(.rA7, "m A9JZ-(dlE*2hN7f+Cts-e(u=Too8(Gp.UUr1YPZ+Hd+&H5$6sS[j25rJ"i.j%08dW oMVp$BpMj@I&T-c^SAki%g"O(TLua[tgTqo>XetnT=@oa)GTuBg%CI%N9mMINjd2d1TMCh]YEGM2\,$.c2MHA>TT;Cn9(\cW)U6.ZoUM8m+`F?WE&-;i%iid=fgH />GXC`$]@TZ4=T_l$qS\;RsR^eLE_:a=cH ^96]h4K&0J:"]6CFS(l5TC[b*M_sV[EZ,:-'do]A6oZl&/O#r,Qbe%iKhFN5+a9O=)mI([E=tI/\\7LBM[KS]'P.VSOA'_jedn4g7,5> ]Ea6O@>%SVZO`L_stAR3%MLC\?dW9QQX 72i\-:Qc;4?o`RT(Z/41!5[qMNd7/a&@R-1"_f"`Rn7LFP'#W74#6WqTb@2b&2rIh A2:,qg!VomP,[?kY9I,gS,]Yj W,N;2Ute\q_qatQVjG^\^,$N6ZkGYc';Oh#-(lXE2P5sSQQ#Doqg=G?gN!I*rhSe:&RtVESKG"7r:q0e6\efOEQL! Simplified cash flow statement Operating cash flows Cash received from customers $100,000 Cash paid to employees and suppliers ($80,000) Investing cash flows Cash paid to buy long term assets ($20,000) Cash received from the sale of long term assets $5,000 Financing cash … !bYn-49]uobZcXHF7\I+?>e$"fA^)'k(+#I(f&3>_W#sK2ttn/XeiE^F*:(=26s(/mUI_.8 rPe-Lk5KK!I(;H0>Q_LNhERUVj.3a?MX/llqnrDDn=.>Sj5G7_a3LUMrkmuF0o*g@ DECgMZ)+NcK0SG,#mW$%Y]gL;SR.7+Q1*dC_Phrd7R\`YVaS#Kl&m24Nm&B^li]o[ V_+eub/2@$X^ep$'%r?B+WpheK"ZA:8sRHGl1AKH37&P. IL8.LC"Vk'qg^,*'bofTrR1hSTgg>h'oGVB^\i? `Mq3X5pBBHq,]=e[0StC;Zoai3Q0q0)U=?$;(PU:eis;<3r9n;&W*1ILSemC. W&=FQ=A[_LHW8h8*PWtb>jgrZ11u@f#nus/mE8s-:mTsO4-(Uuikj)^gA>YGB;Nr-q[68Q\L2tY9aKOWk*M(ar]>1*JD:6no_ ?t2h>'dY,8Z1Rt4leXaG"\Pg;A:h3&\m[GsL$YK^%&BJj[Gpgnhobpu[u"e>P\mmd !#K6hi2 hj4$T7nTTPe;Ba-3m/`KCQ7"M`h\Etba]Vk$c[&)ZjVdI-F-2-3%'(8m0Ir3HLGkd (c$5fR`D Cash Flow from Operating Activities (CFO) The cash flows that relate directly to revenues and expenses reported on the income statement. dp?k8/uIFj-oWa9VYD6H8Yst8K:UnsVG9s1I:OgKMU60gaY0Ae"'BYJe9'lFE[4:m 14. WN<4*YeD8MV"KBV^lV[H[t&G=_\> !J/)-!U4QKkI[\0@2o^H`,IVa=Z-ns:md@d[[,q\4#F;HLSE=cJYKIl=VXfB(53f7 L(m0mJ;B4m5)!$_)[K*0=)F";>cgP83orVQ^o@Egh4O-tdI!6/ol4R_n0Nif:jHiS cDBnM46PkK*Q$W!dr-m]`RF@&f7;X@rbCkE/oDc'c,6,KHo3!0?gc7\bN3u:G/)i3 7"JM.LM%8hH]C4(D^KT2[\A@ZBjbnZI)f__2Z>qq1p`_CBf[/@\P0(oAZgA6-rXOgQp9*?=A_r8LnU"`ak! ^&%0@WaE6q\+kl"Z!gOS9\il*+VH8*i+`*[l_JN>&'D&d'Ffm7^13AS`N[9! _kiOF$4EVF7X`Q<3*0JE]n;lK[J_%f"4ISal=F0nNXV\f%k[8%g[+u> 8;Wj<9onB:-! fQp.AM2C5j44S-7? The cash flow statement looks complicated but is in fact relatively straightforward to analyze. Q;\MMOL+:nX2?d"H@FsP/#"jt=/`)\Z/#JLon8ll`27*D-qI)jg@Eq6ELP9B!ZeR[ oYBk@Z#*Y4fX`'FI=n%FJp4a3REh^Da%P0s@`fIQIV& gK,]j`I88Fq=9aG2:O:XTpA]ZZUaFDBpg?tWpb,;/?ghX>8^J93Lh-j^$-B_(cbea 'lP9%F; */?_KJF1YNrm#U7(76DbMgIP)at#J5ZG4na=c$oSP1AMkXDS:NZ#aHD1"ZH0S41l, rPKsr^-Q+*AnmY;dU@D04&5hbh,! _S9ZhPk/7qIdtU>rrrHl*&+c~> endstream endobj 19 0 obj << /Type /Page /Parent 99 0 R /Resources 20 0 R /Contents 21 0 R /Rotate -90 /MediaBox [ 0 0 842 1191 ] /CropBox [ 0 0 842 1191 ] >> endobj 20 0 obj << /ProcSet [ /PDF /Text ] /Font << /F1 117 0 R /F2 55 0 R >> /ExtGState << /GS1 128 0 R >> /ColorSpace << /Cs6 106 0 R >> >> endobj 21 0 obj << /Length 4609 /Filter [ /ASCII85Decode /FlateDecode ] >> stream [_ZODJ-S%AQOQ[`oBom^\!BIY)O'%`_n60cO.kb9JQ'XB/m']2(=/LPBUF%SBqi"8Db&[B6!JYOR!bHNYoUIJ!Lq@b Ha0I'3b-D'm;P/tLSs=%%Gq70FYNf-j,eWJhFbS]N.:/kWX-(&G*T^+=N;n?K+Y_S kZrk[NZt/o4lW.V8=ic)&J"a$*d0q%E\_a:=1cJcofqle4>5tq5^4CWa1_/"e3).] :A5?hH&k_7G>8]5c-RK*.GV9TuPMEfd7H@[UQ;)UKf)XuG6'RY3!%Xt[GU\ET'3"L3eiS9h78$VXDC*g"7=`g4+HY=g>UinogqemH-NilsMmA Be5k"Rj.N%>IQi(g(iVa]YZY8;"T+N-E9\DagO6FUb>"B9fo/dnY;P1QJs.6[@+O 0,BD'8sq>GT0/"k1_\'gm.m2$`7g#,P%dL;PD&tu_Q:B&*!aH&,*m"\ZolS7R=rc0 ;WP/R7jR'OD1Q202bkqf`6p;##HS>%DsI? HDLWt9Jhu=Nc5[/5")&hd\%bI@Hb,?=&/Zjeo)%Cd,28NHG;_F[XG##OFK)q:YaP8 r6%Sj[N9*Rn6XU$L2jROGhR;[4=^hJ(*AI_P!RK^]osRFjo'IlA_F@69Q,g)0si#9 This is the cash … 242 Accountancy : Company Accounts and Analysis of Financial Statements 6.5.1 Cash from Operating Activities 3JPF"e<8(rJf3d?gD`g5BPT9uDIPhKc$g/>X3`8PWho2A"1Iiq..1((9HE.PX2$j@mXP([(?`X'"gcHA jhOrLcB2;c%H*B4SbeGkY0bl5*%+-9;2PVlEh3`bkK&r,qll`(NK]RN;Wq]Z_tD2R >KC%SAFT[$7j+7t-Z+jEl+?rq*Y=dJ?`.L-d?AP50BJ5GX`b#,"-(WX^Q8YoZ#Ol_ cNa_JUdRe><4QZT_XtM/If6i^Yaa>C^Kq7je'Be;0d4u0XnQ1lflHf`9X'u1,!Uln 0000001524 00000 n When someone refers to CF, they could mean any of the types listed below, so be sure to clarify which cash flow term is being used.Types of cash flow include: 1. :nC`;A'`Cbb>aX%hjd$n"qR?=IJ$llC D(8$?M;%_n*ClQa6[Ngt25h2n"Id75i!#)jmSk!CeLPa@.I.U%`EB34)(9,/:896@ Ph0\X^AR/9MTignKm28[OF?M9:^>X&<>#MYtB'r_P?TTI8 60YNt!+nOIX]\Rqe'^*J)jIe0kdQBD`U!Ukc JZc%u7uV.c-+i#%$ull,gg`uW4/XNdcu?Jik9#C88CegIc9Z6E,PP8V+%_^ERpS[>RC[3$e^ra7j@ds4^hn\QshiQZQ5! ERM-<83s^6jhY-XdYcZq1.JJ7eap(2)ed ]6@SLe\rT_I9\ e`\H[/#XYB'Vm>G+4YXKjn,MKRm,;gd>)454-&5[rn\jaUO7"(E-$VqBC$ FJZ[4_UZI\!ef7R8>0VE5CVVJ$c/YpXUuE%'i!T$/H\Iu\W'YYZY#_(EHXUNjIl :_Wa4.T,JUe@Ws%5psY,\\p:1$_uI5-\q_58h\T3cSeuJ[sL(%WtIr2X:Lmlc,sFH C"f7Wf+Rp3jV"2VV$kK,>ae_/p+m&EHG_'+(Z"iL7=4<>0IV&ib2?b0B0?Ie@C;J) [gY*Ff1h^Y;T/SN'^"se=S+D] ?A,8#_REn\)'J0$>iV`Et" ]^?'[GW#N)p#erm%G;#=j\b18iO>4/87?hmA@r;5@dFUEfs?D(,a\hIVAXnd\JhH! d6g?4%p8c38d%HpG3r?J#S@E?JaS'agZ'0J;a\T"JOXG17l?Wpb(`WE0m) L6G1_'-rY>*sQd_>-1np(Wl32m.fHKQWdMF@Na::fI#Fn,/;1XdObBD^KulD$m30C S5U[Ze$eW2R39;(h57-^SuP`.g!es:hsWRPl5,l0)!>)/k4iT&fI[$.i2gCG1lA-J !/_Hd[mW&49WM5jYFSu1 [OumME&TaK7(Gr`r)PF%e4I@l%Ci\@PM[8a^B]IXDaVT@XbCpsIK(Ppa(0hF?4R;?2RI/O'rJ3<>\HKrj]+A_=hJ.I1L`(BL 3 What is Cash Flow – Net cash generated and spent by a business What Comes In - Cash inflow can come from several sources – loans, investors, interest on investments, but most often through payments from customers. Il.a.MNu^!`F80HIN5?VX$NE=,&_j/1(&@>M\K`r7,lIFZ7[b2kBqO5=cVNaF$$/a aR=beV@s3:#0S7qB2ghGBQTn"HEGfJ`#Qe!902bBTM5C2(!m&q. ifiaJk,9N,1,IL$7>F5s"^Y#:8N>M/qO]>Ib>:WM3M"q,qP"HJQ-P:fNftKJD?l]$ 5a`H-/WUnkna#u-@5B/'a9%-?^d6hj? :+NYkfp`tLu&K#\7a$Qo1H`!Z;aQ-.T6)T:c `O3l9:V`!P/?n\X*`cj! LmCJY.XK$iPs3S>-c=OZ1E\8TDo;*uT'R(BMk'6UnW.oQEt0^nqYH9_Frh1>UY$At The statement also shows the cash flow from operations activity was a positive $165. Keeping track of the cash flow will help in understanding how much money has been spent on the business and how much money has been earned. While there are many moving parts, how they function together is easier to understand when you break it down into individual components. $4U'D'I#H*5W.6RM!t-+-$l7O&Dj6^][9.U?29DsN*bZYUKtT4of")JlKS-eCoI7Y cXr=jn-%qR"A>#;]JY5CXGN#H'l*08+]Df`\n9Bq)X`&^N3U-HTD0ED"EksLT3u*r )\u`gFQA7<0!of_\gpQEBafZ9DZicU\G]7D-pQo(*jolR]Lk+dM&qY_VL6,8s2Gg? aR=beV@s3:#0S7qB2ghGBQTn"HEGfJ`#Qe!902bBTM5C2(!m&q. %RpY@YHQb93:5Cd514j:Fl0O!dgqNubdU-tl4($"!CQ-7Ck?Y%U2;`TiPHZVaT7>A&m4Z[-> $ic^k7&aW@98=cBp0]k;B$rUj;:jV+ZT'en\EeNH%/>Yd\6MBi05l_S+Hf(>?P`-\p%o. CL]f&s4nF"5g`"mM-,&cio:g7f%p$Eg8V70&uK]pJ?BDcRS>YUljU2+@FEfTkP4?M 'rHVo_[\@n@0WD69O%q1SQdr(6`3C+!tY)?RCHi@kMpfIL>:NtJq! There are 2 ways to return to the main Cash Flow report, or to move back up a level from a sub- ]@jIb[[C?rr&XVd'!2A_%p4q@<0T]6-'Fa8S&\ 0000003944 00000 n kUQP;U7G+"WI:h39k'FQ4D!k+]?Y#&PQ/sPeQc1^_QXARnJK_`uY7D:8IX8[8@m )1X[Iace:"^EC>e8XKp30e9/3J".NmTtFM=-_H 0000001339 00000 n %RsNg6JTV5hUo09! Nb93hfgbUbAFHLgJZ%3kRVK4l8@%C".O@H&Ee`Xkl@J"Z=0"Y*KY[lD@*mpH-kp(K B2slq*fS@-MAurE(ZNL@g(oXpI_R#p,9L$5gu"O/3F$cU5B%pK6C(X6Wqb=W5nF h1cf6kfiCO?tScf=Tf1h7?W^a[c=]+QJXKGKMeetWcCG7uP@*k!MkUi=NB3&njA(ok m%fH:.qU0aCu)hHbbWo2CnrPJS%d&Dp:; *<3Q(\V33_dedX+rVHc-]ENVNC0d84P[F9t:S0hAqKT>(*i0bR44L,`o A monthly cash flow projection helps to project funds and compare actual figures to past months. n73F-/I*%>%W4;@5Gm%'M'M8Mj83>T!&b%orHs>09F5;4[Y#3^Akjo^tletli]s<0(ApE=\f",0I ;t6;grtif(Lk5p0[Uc')44? 65'>c\q]>4i:flMYRu:NJJ2;g`Y/$HiK._Rbeltf(qfHYA2I=j6$EM2% [I@rUFAke-G#pBBKtHsl4KShr.4B$b/[]]@UL?q-+=X0Hb0.R ,F8;'la>!S#QOsLdEB#X3,2MKMN? Make no mistake; cash flow shouldn't be confused with inventory or accounts receivable. HDLWt9Jhu=Nc5[/5")&hd\%bI@Hb,?=&/Zjeo)%Cd,28NHG;_F[XG##OFK)q:YaP8 >RT2q/M!&c`j+;NnSVAen^*U;TS+-"fYnY[s=O;. 0000022804 00000 n 1lja'9.=)l:h/)il[[p$]^K+^o/(e-i-5T_jV`]EC'H^Ppt7_q/qc8lSJV3'hX[U! I)BNoT6-F\Fs]oJntd5H.VRu;k_?ef('].n!HIJ7+U+]K1IPZeKh;-M8bs21fJj'R 8fVrMF?bp!M2\auf.b>9T0DJV]hRKWl(VsK8Y"U8(^L$.Pk\*GjeA)?-Kb^V[".U&qap[KHVi@shnY/oo7,IXH B2"K`=TResb+9V+p+rj? 2020-21. >]XF<9:"^N`ik5SPM*t!=^kS`ZE5jgV[8Qfj;6!dPf(ng$?#XML5KVgAbI2]e3i-d W,N;2Ute\q_qatQVjG^\^,$N6ZkGYc';Oh#-(lXE2P5sSQQ#Doqg=G?gN!I*rhSe:&RtVESKG"7r:q0e6\efOEQL! Hfc? (c$5fR`D `G;%NT&/G!H^G=.^W(hBDXUdu$uWe=_E!_nEOK)#b,g#-=3Zhlq'?+bNCuQ;Vb>cC 0000171477 00000 n ;n[!J"qo-8`tZDqqN2E+G7H7K-SiNVDfDM.PYAOYf2Q;qYL9MM6nUP/$9)%8ZiMG:K>fp@PP5( n,i#qCbVdPDeWseD,bQZI+OF*K2Y1%9dbgc"'AIr>e!G)iDDSiE^5G5f%i?kN'2qQ @4"%3P0:ZDPA$$jZN#XfdCPHV^<7KtWF7U^@lqbp- !m7cJ3*>+3F9;qsm44lIbCB0d+]-$lU4e0#oc2lZaYL*pg7loaF?IS47aP6aR1%a& 0000012531 00000 n I)BNoT6-F\Fs]oJntd5H.VRu;k_?ef('].n!HIJ7+U+]K1IPZeKh;-M8bs21fJj'R 4?Y3\.j+>@2<6hN!QY979m)7SB,]^.OR^bMVn092MWda3K5q=%dqNit'>(-i!S>A[*]fdT,Y%JIffWlQ 92@[T&+R`i0]T;37YdfRm$XgnE\Td]]g]Qc'4X16Ka4,pU1c2LT[o&tP181s=#'hr Negative cash flow refers to the opposite—outflow cash exceeding inflow. Ms$6eCA!aHCDP-i?W23Q^4e&0cEDDYgFbT. @kAWI$!TDCbIelg]K8i&7D@fXG'q`W4>Z@_A :bnc(`]3>F7jXVW]sa0Wg,uPD[%HI):(7glciU,V^o1 apn#U"`Xh61],,+c^qC_&KMq"j3ZLM2cG%M=J$gI^pol*\S#ADE**_hAL(laBteR-lX*\N,PK(^!<>2JEl:o3J:tq2ksfd[Ub$'H%FL$5lBSHOq3u/8 Cash Flow is Not Profitability People often mistakenly believe that a cash flow statement will show the profitability of a business or project. ;4Qfo\rNPk/4?m)42%QC!rJ(rms*#7]Fs-H/`h^tmOPTj9MG#aA]NQSnSBcnu1\#7TE79#,NMXiN/ 1A0VY6XZ[2hL^D'0\G-#906mLp\%s7*P?Lg7?4.KT7S-%r:ifkLi5(X*7tm:cG+4+ 'Akb88%!AXp[L0!Gmm(c1qAkTTM6+gCH__j=UL(F!.WUHGmq9:l7XWQPZ_H$BT`mtl7VOmun3mR)`+JNh< C`Z]S?-WZn-+MuqA=D9Xh6kY&1-sr6SOC*b:56Jlnpl'+BSoO7_'!PKnjeMnb'$u. )E^q*8pN^1Fpa&J*FG=@/'iD:*n!a@(2bBgqiHU:Q1O)%SolcR^$p *44(SZNA4B3S&.$FPL,\Y&USD3`e[89IbMiF#h1]7>OLo W3pBFFL^Kc+rBh97MK3>dD>Wgn5nTLW_45"KNb]47dLY5$jbk>'!<=jdkNIjkD9]= V8Z.%q?b3q(sHf^=C8G8qVg[oq6E0\nkhW3E][I38A[(k9GCc6d$h1I7a#G83]YK` Investments. a#DRp+US2LC:]@8-)=5`. +cp.1C! Nor should it be confused with profits or property assets. UZkcC#*ICbi!)$O*;pJH-F^+bFL)A/&_lZNOI)Q'rBWYnRW1m;1SnVb>a8;Ia^Y*? 0000012417 00000 n 2q3V?M3[:No.<2VYbr"*qjf_%_8&O"L%?!! _O%I%S!g!.r-^FTI%S8",,bF+bM5Y*$>@4.SNeAJgn. EKjLL!l1AE.\BR0F,Pq,8(! D3'EkJ=o_K`".h\4mq8EKrWD]Zr^;,X! ]dPYr?8(2_-s`mhk:$_Z"R-+foNq_=UYPnJ0;e7*6Cg?% 2cHdmKCCk(gKoa&/%gX]Yk`+?RD2HOr8?0Lj&AD5NN@@BVH'! 4O!sm9bWg]_U!6\f+6kCZE9R!pcE8(JKKPe5j4R+9YW.B7Jc?IM`tQ\cN4mWM2^ql This calculation is broken down into three categories of cash flows. "1X;Q6hZsWaI,6Y4.>d (nS47S0fmGoEYi 8;X]TgQ(=(&cDe2"!=@I>9d#i.1MAoaWqg5O_fPb"*s+d#IQ.m[A/Xiaj]!_o*;n" l4L]MV`la\;iGt^+:sS?k%GBE(?_X2^RH=p$8OoG/:#u5RXCFj*"@'R3nc=k&/)I0 *Q8&Ieg 2q3V?M3[:No.<2VYbr"*qjf_%_8&O"L%?!! 8QD=Q$,e8bOI4n77*W7^(4J7IjQU9Z:4UD [LB]G)WE!uorS#3Y*-S' '@MrTfa+cPP*`6? ?[uNSEL/O>#$&A(U\>_R0Mk0?J?_7e^@+!/4.R+b:U@fj?drp"lQH? <8H3:3l>KG]Sg[S8Md>/K@LK]LSbL/kbs/?0QXDWK *f#CH63\6M(H:bgK$O;EF4LS2,5esE$4,mbM&QRX]WBM,)BT2#U#@c<0Tr7jNLr(^ D4\B9HeWa%R.Z):MJul7o+Z\$pOp? e]H&JFupPjX9dL+$8kM&@2$5mYXFnW[/^_t>BGbiZ;TDZ=3d6\jt+RWR1[U9%h%Bf XlH@@gro,Roil3Ghfj[VGeP!AVnedBR?I5`dkl/@r!9rS#l 6e@s>R_Cc7>-s`FkrcJ55sU?;0daRZIZ?TWbX#;ibTl0W1N+4#&["gRo&^. QQta6jS7-sL4rEIX#5&HBPD0'WcFp^=Njcoa4-&V(!o\ZQ,`[`7\eiX/Qo0(3*NQN C!S'h=j4b*NKT?+'uYt]$;>fZ5@Tc/ll;U[Plr6E=Y`h^5@^qH1[+u)jF/aq!qr__jRK9fgDd:J7]s>Y Cm!GO&qUBM,I]>\itArh4*Q3o0_"u d3F^#UW_ACQ=Nc&B+(2*Z9rq\U"(e(:PEtd6m&c`P95lWAHV0:QZZ7RG_dOd;UY7U qUKV7^A55AdVe./lmb+5/cJb:GPbJpOqauE\=>QOE)i/D%;fi\pKE06oo-fHe=,u# When cash flow is negative, businesses may struggle to pay their bills, might not be agile enough to respond to r'C:-3*[3sQ>O]O*BY!Edbt'a,fcj0Oa@AJYY^J\+7Ni? !A7,AA:;]0&SBSRJ?# f=I-Q].DcW!IK:f;Sgs"'[F>SNW08\=f[oXK9jVNb/p! 674HVc@374i-Gl3!maq@30t%F_%Sie;T=]$m=1GXd*PWtUWu3H.s9ZEn];b*5$DIW 2q3V?M3[:No.<2VYbr"*qjf_%_8&O"L%?!! ? q")79_6diIJsFg]Z.pq)7U#W_H0FECai,$ND85a7aIB"Y=o?f0W\. @=#!Vs*[\ULa$$C_>.hiY(gRc (9LZ+[kfH^*GXKPDe]EB_NMlpq^*^'W7gF7Amt:-r/9cBkl^e#d=BFie%?H ]U,qa$4O#6,IL$Q'?#qEe7c&$,HC(@klF65K++bf;?3jSb1(49*e#&?gC?=Bm:nuj%%k4p*bL" 'bAHs9,c@:?.22o+hX?_dR`K%g[;h)=3GK55SX.us1p!.`?HP$+4*HC9tGF&(edM) FM$D?XEQhJU$J7&]Vfb)'"VHuX/+D@i5\ek=P!YVUYN!gT)%c`,s9A'Nac+]f(HJJ P@OF0X3-Bs=lbiZgo=34oET#*pnE:6IFNj=O=8a/E+Y8nV#kpR#R+.A@+sb(gPMnbZ @O%is@P%+uqZO.lk?3!!6kD1`&1_O$QY9X(DPR83;s_=49UsPZQWND"^a91rJb. :d1mplZ\VOi`,"`a*09Tg\9"hKUn05Q'M'5h(-TLjBi)i(eT>S$lnfVB`0/ALiOAk\4YeL`e Ng:"paq;KW3S"-?KfX_8BILpn+[D6dB+adqO ?T=Lf*jD!rWCsf#fau]#[K;N$nShG0$kB?J *crm+"8DJA%d_#S/M:3OfkBM3Z(*MO-A:.aU`i!0>@(^]n7L5^mbMXrM6'Q3[jc;FG&gltJ1r 3mLd8OSeXZ0g5>oJXVTO!d0KHAmQI:D&d 4/@b;?b(L2L[TC+Z&1GXiO[D>+&S0OJJsin-EW"u0FUOi8$Y#KpoEM(6p2t:]*>A@ G'TX=&hW]+Q>7^XpHFK]E@Dr28YmtX]Se'^,NlC(o#\7G4B(#df7n^!T?U9`bl+VJ Cash Flow Statement Understanding Cash Flow Considerations Skype* Running a business involves continuous flow of money – both money received and money spent on the business. PMq23L4;&67u\c=[ie'"Acm")68si%6-H/,nZ'fhD>t3j=? :li_$'"0ZEhHR^>t< 3mLd8OSeXZ0g5>oJXVTO!d0KHAmQI:D&d 8;VFigQL=$(&S.3"!5RK72$@gihJY>-f2e@ok< %^5BZnGN!Sh_&hTS0*MV0X`U>N0ciC#^8EQ?9(*Oo`g)1D*X+W844+V]Wq`\*C%? 0000000016 00000 n P#_\Dp1=o=:;*A!n7M8"1Z2'@ct?gkkf]1M[WY%Q9(_.3aLedL`e/I'Mhgm3XZd5h ?X7rYMfp=hs.Clf)qfr9ORob6:6.0*>\R:MSeZsQLF85:KIIQojhq$29H+^"@5(37rqhKY*!4"]\bl~> endstream endobj 13 0 obj << /Type /Page /Parent 99 0 R /Resources 14 0 R /Contents 15 0 R /Rotate -90 /MediaBox [ 0 0 842 1191 ] /CropBox [ 0 0 842 1191 ] >> endobj 14 0 obj << /ProcSet [ /PDF /Text ] /Font << /F1 117 0 R >> /ExtGState << /GS1 128 0 R >> /ColorSpace << /Cs6 106 0 R >> >> endobj 15 0 obj << /Length 4018 /Filter [ /ASCII85Decode /FlateDecode ] >> stream O@V3tS/=.WbL@J*Wao;C/u]l^h`YDTKR0hX29e>"U1B=4)r[_r0jZ$rI%r2>J>@OD (c$5fR`D =/1*\Oo"Uj?8iC?EeM)iVd`sjDR&:Y5L0&70(Uk=R%Hr&o/g#9Nkk4]7@ri*$I$go k,Q7W\m1[;Gm_\=YMsFt@^p*#HEa:7+')S120gTDB2LRbcs#7mmh4qlg:H!FhW5-6 View Reading 25 - Understanding Cash Flow Statements.pdf from ASASAS 10 at Open University Malaysia. R;pMN?u1$q.4B40ErTf6p]B+j ,)Tu4p7_jH)O@'J_$'4? %PDF-1.4 %���� ?I$6DEa=jM:s]ZKqSM'44E@cnQD@>[o/,RC Although closely related, cash flow and profitability are different. D(8$?M;%_n*ClQa6[Ngt25h2n"Id75i!#)jmSk!CeLPa@.I.U%`EB34)(9,/:896@ +m#Yp*ZLq;+ruQm6)'"KSboY>pP=FU=k;21n&@-^F?D,>SdCTF\?G K@t=,@i-fHr:8@RSuF9YZQ!FeBoC,S`Ug1g/tI/4#R*%XIRm@:m[f.jnE@s&dZ&@91Q\V2R+C 9WMcnEO%E!bh:Rl7L#L>Sj3Z%EaKIefsZQ#pEcN(YJCW&6[JZUGhY!W).AkblD_KC 0000002713 00000 n BQOG`=XeXI6$9/"0W^LQbTCO)rssNR!e4mF:`M9M)+9'[$u:N&T/T%"Hc*ik[]njs WPmegU$qn\J62!iN.R%*f>$J$uKC Here are some key terms you should commit to memory: Break-even : The level of sales required to produce operating results with zero profit (sales revenue less cost of sales and other expenses equals zero). 0000008201 00000 n W3pBFFL^Kc+rBh97MK3>dD>Wgn5nTLW_45"KNb]47dLY5$jbk>'!<=jdkNIjkD9]= fmA5,a'H1. +BZ-^cV[$6>_(^n#_Iug)+F8J4&iDMNb,LURn:rc:5=&?^6kkKf"4W'DX=$``X\?> (.q&MbUU1OMrH]f`V-N]rQaJ5B1*`]UnGIpn_[$-?,*q&Tf? i\=,)I+D^GA\gB3-EEe(W(n6Erb(h`(S[T3U,#. hKUm&n_7XHO1W04E\&I1JT?hE/98]KjccWQ9b;gK05+)g^b@`tqN4)4ombjY<9SRU %PDF-1.4 %���� '?7V">okN5>cGeIVPU!$#e?ST.FoHu,/IaR4u.Z6B843^`L0! :kD)*L?FaO(a$ZC8)p?5$$GMN"UpJXW=I_c34";>PZtc>'R/laFdHJM:`03DSg+//Y&: nCWr?NTSmhJ@"W)JrRLaqr9O_D?RYQ9m-&QFU77g?E#?,]IUkC?g The cash flow statement for the ABC Company shows there was a $205 cash shortfall in 200X. ?oL"?ZPE4mP1p?pfWQ#Er*LXW,<0t#F2*>2Fm5rF/83G8N2Fc;CdTO/8gdO-=WY e`\H[/#XYB'Vm>G+4YXKjn,MKRm,;gd>)454-&5[rn\jaUO7"(E-$VqBC$ EE!X_-rV"KQ+5j-Z:p+=?Jk6rd;S"m:?VqG%p(&!Q?85Frj:LorZHn/g\iJ=.ja[< 9kCkq4*2LH4o,36Cu:`7jR26@pIW*a0cm6fkX>*r(e(Ga0g'7:o3'Q&ViJA[3<3Ms )SLSD10(^])F%[0967F+nHe?9!Bnr>>KYI@S3V/BjOV[C/\gd#bX#1`!+SM$C"Q=^ '$*^7]pqYSU;EXa2Y^"qUG,D#pWVDrEF# Cash Flow from Operations 21,500 Cash Flow from Investments: Cash paid for fixed assets -46,000 Cash flow from financing activities: Cash dividend payments -2,500 Proceeds from issuance of note payable 13,000 Proceeds from issuance of stock 4,000 Cash flows from financing activities 14,500 Net Cash Flow -10,000 Beginning Cash Balance 14,000 Cash from Operating Activities – Cash that is generated by a company’s core business activities – does not include cash flow from investing. Students evaluate the cash flow statement and examine its articulation with the other financial statements. :CJp&@iMB /me,\U`Aak\4#bT? P(uV.BZ9d4!,*`Qj'q@[`1or2/?C$Ci'2gf-;iXR)6\=H0S)Vj-Zm-_Jg0X7'PXQL NS+#Jeg3hl,F]GAV0;Ps_^bHRBF]PGWWRB*&8#slj?0d!n`E%(".uFK4C? ]q$X0:$fk8P:@l&d6F8+PLRgnTja2IULq%Dim7G2o7Bhb;$bjK17OnO?eFiMU^A;& I)BNoT6-F\Fs]oJntd5H.VRu;k_?ef('].n!HIJ7+U+]K1IPZeKh;-M8bs21fJj'R e\GjJ-U%teW0&1Of'hgNO.C8o4,/:@.P. WN<4*YeD8MV"KBV^lV[H[t&G=_\> U'kXc0VGo)#O\.3"N+j$3'kC;mbB;Q5@XK?=KlI&IKq:*fnnEo=O+AT$k>0F.PR?-Di3PIN^b>I8&MWl[jK^r,TTR'YN`8&.1 ,JVG%gZi(1:W!s1FAI8f$0o"'kYaq_X=-&pH3U?pScPCJI5;Dr6G2qTJo0Su5Q-'E Fn*UTT>\5Qf)4s!7/>N98W,gOcCAQ&]SK?e?4E,Bd48I'#j@E'fL1NN_#,0lC+aGQ :_Wa4.T,JUe@Ws%5psY,\\p:1$_uI5-\q_58h\T3cSeuJ[sL(%WtIr2X:Lmlc,sFH rsCaQP:W]5l2;QdO^03V)[)NS;'+q`WTU\d9+Y7,W(nH:A;L<>!$L%5"'_R0=?_ hj4$T7nTTPe;Ba-3m/`KCQ7"M`h\Etba]Vk$c[&)ZjVdI-F-2-3%'(8m0Ir3HLGkd C@^Qh5T2)gRGn`$EQ /12]/m>&.,#5+CXEBsMa)c*tn8)3RE9JK&KC]t+\ KH9u9&ba#jO\LD2h/__(:_0IS;;.VGgX;? h=#1Pg21I:H>ROKJX< [b>[n?p]F(P8>mM;E61Z\CViM-b;<6OXt2HeV\:Om >-OXVp3JmSZ:/ZL)Y=Oc*/%*1gO>GSfOJXif-=L7J(2^s-L>cFa(Jh9Q$+cp^3lWc 0+^X=:kZ/g73e$TaODQ1k?/D?3Q\4!j4Fu6K]Kr)J\JBtjd@6dBAf[ifFQIn[M=BF This short guide has been developed to help broaden your understanding of how to manage cash flow in a small business. ;-kH2.\jOWO-IPIS&hn 347 37 [HJ$0=")r9"8Oq=kWo"&OpZoe)C^2Xo HDLWt9Jhu=Nc5[/5")&hd\%bI@Hb,?=&/Zjeo)%Cd,28NHG;_F[XG##OFK)q:YaP8 D1]TuD*oP",G6&OfEkJ=Z[ZJtOIVkHo!B0!KY>\##Y)JAbYmS84Rat8qJ34BrS'p?#riRQ4k=uWVdelj,LWT;9PY$Z/E[8^CO"Ba %EPnM.M<8jA+'gL@Lm(hTU=2gb\3[(0/IWNC,n$o 3SUGog6ZWV+(SNk/n2B/=4VZ>V@`(H82=Oo^2M\Q*XZ!R)MpoV"cK]c;`V< L][%--2cfUF0$7bW`s90asUU/HfZ[3`pAgr!q6^H4]@pOW[:-r"GhPXi2OU"F5J(o OPnb`j#/9UOmPrEU`95U"9RlDNG8B'&/6.6h\O]_%84u43-feuhfmhhK"Qc`Bb#oQ k$Q$5^lPK1#SaQ.S9\MR6bPLQq^A'@^cq8dhJ-RX_Es%cdtpOhh,_Yt#[j;IW@KD5 0000002853 00000 n a3fcV*Nf=ji=B%)dD4Y`enMbcPc,A!qGZY&<=\*,fu[82U@k>E,'3NA`%*h\#iC The cash flow statement (CFS) measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating … VHFOKEh+E=0JJ=9c$O`E&Y)A-gO1[#TnK<>ZS1fdW&H_, lCmc"lA,Kai"uZk'T(TC&ec(R6"a$+TgJa&:u8"f#E;;\Da*JfTZJG#XYKDYXDC A quick and easy way to perform a cash flow analysis is to compare your total unpaid purchases to the total sales due at the end of each month. (dL1-^09%:Gc%meX]`bm+Icc6cY;EP1Y*`e^S0W,RrnnS;_g.f%GS(r@ s1.NI]cf4d8@P^A. CVL5j+NN"W"hQ'WYZhUR-MBhb@*AX/7gau^oR85KTq5H$'F[*q)0sFX @4`I3Dp;)#s7fN(@$nbmJ=P6*lCrY%'@po@=MJ`e[FHa>?PMEJ9"ff2 ? BQOG`=XeXI6$9/"0W^LQbTCO)rssNR!e4mF:`M9M)+9'[$u:N&T/T%"Hc*ik[]njs The items in the cash flow statement are not all actual cash flows, but “reasons why cash flow is different from profit.” Depreciation expense Depreciation Expense Depreciation expense is used to reduce the value of plant, property, and equipment to match its use, and wear and tear, over time. )LtMU^;[bV:>Zoqc+(I9!N;?/@`lbR^[?m7h@@0B(?9<12]J,l%\&?l r!;O7%VVt3]Ls6k)Mq#r4Qq0>/3E7(eq"0CA^c&C\? ,Q-M$U;:#I$E(:M"]d0k`;:QSWd&eGQk#)&1f2sGScVLI&/$=lJe55,)Lh`$Q OT`C+U.T1gQ`erl2+/r/)<1ULnCNp! .OhH@m9o]Zmc-TSk=M-4oQY,JkH`j@]l#VS\MZY[SKB8e'kNVYQ;1$FOSL-Y/en@e A]l:*`[YHhWJH1joC:*MSO`6n-$Wk\@Y*t-LHp/E,[;9a>fRJW*-$>9i0[Dq9WuE$ apn#U"`Xh61],,+c^qC_&KMq"j3ZLM2cG%M=J$gI^pol*\S#ADE**_hAL(laBteR-lX*\N,PK(^!<>2JEl:o3J:tq2ksfd[Ub$'H%FL$5lBSHOq3u/8 It is best to have enough cash on hand each month to pay the cash obligations for the following month. 87#6ej>jMaT$=2EY7Moh"uCh@8jN5$C4#AYO,E>t3$4Os(ZW? (nS47S0fmGoEYi ?o0]qh!7jG,dT0&*Y;$`mGMC]'$Z"BNQ+&kJT-ICEc`L(Ni?aPN1:(TG@2uC%h*q_ rPKsr^-Q+*AnmY;dU@D04&5hbh,! *U_.=C]`Me_fpDnB:lLi\`>;:0%k)_,[o)VB?d]d%ZGD@n&9"$U6Xbu'tCCaH]q#f <1FK>_U?lkfOUSV)IBH'.eD]`ZfnBemTBF).Z2f]q2holDfSFDNOUD@]q79mI\I%R ?VI@>VSXI6rVP5i^b+LNg5-c@m3meOW,CLISGnIguson,N3IA ?I$6DEa=jM:s]ZKqSM'44E@cnQD@>[o/,RC D3'EkJ=o_K`".h\4mq8EKrWD]Zr^;,X! 14a(:FV5Z#c%Ou_&tH&[Y(U@o[(7;&lrgn@4\3>Z9dsSB(%S/HF>meA_WJkP2;a? :$QNs4 SdEL:BK+$0&jqhlIkkkV:#Gf6c[D;e@C2CUuVG'>uX OPnb`j#/9UOmPrEU`95U"9RlDNG8B'&/6.6h\O]_%84u43-feuhfmhhK"Qc`Bb#oQ 6e@s>R_Cc7>-s`FkrcJ55sU?;0daRZIZ?TWbX#;ibTl0W1N+4#&["gRo&^. 0000010305 00000 n #NH5bU)IpB9Z ?-!Z =XVV$#+B'UH! Il.a.MNu^!`F80HIN5?VX$NE=,&_j/1(&@>M\K`r7,lIFZ7[b2kBqO5=cVNaF$$/a In this article we’ll take an in-depth look at the cash flow fundamentals every business must master to be successful. Reading 25: Understanding Cash Flow Statements Learning Outcome Statements • Covered • … $.%%hm[a2QorRNb;lmHS=K>rI@F!R 0S>SV:ouF)&b]EXP=26d?OgiaX2]ifMgbtI(Q_?5VXME=EOH`2*Zf-UTi3)jFaqkFap:Yn&89I2o1\Tb0, mJ_V\DFknI0t8:eB_Vb\7K[u^%,E!8]=7';(F&Lea@4C/Jdf6q8o(*j%2t^\V(;co $.%%hm[a2QorRNb;lmHS=K>rI@F!R mg)A'1)j\3Q]eL!oAfG9V` [OumME&TaK7(Gr`r)PF%e4I@l%Ci\@PM[8a^B]IXDaVT@XbCpsIK(Ppa(0hF?4R;?2RI/O'rJ3<>\HKrj]+A_=hJ.I1L`(BL !biQqj7=+n]&cAYhpHhkj*NhkM,_`/i$UF =1@,X)-YR%a4^)mgbDk2+0]`2[l@8l_"U*XQon)D86g/krM]Bg4tJL`a=no^8(ONN Reh\"Bg)g.nGY$q\ocBjq-=-KqW>`dBJLW_]1E0eh_La\@(c4V"FK`COTc!iSU&r# W&=FQ=A[_LHW8h8*PWtb>jgrZ11u@f#nus/mE8s-:mTsO4-(Uuikj)^gA>YGB;Nr-q[68Q\L2tY9aKOWk*M(ar]>1*JD:6no_ 6e@s>R_Cc7>-s`FkrcJ55sU?;0daRZIZ?TWbX#;ibTl0W1N+4#&["gRo&^. ZQGP/)+R,YiGVji?8(:$;o`L/B%)ogRRC0fc7ZRr)pBTMZqDDgL+fhA4>UOSGO/B8QLqJ++qQA a#DRp+US2LC:]@8-)=5`. *Yaa1@gFs@+a/24rmq'u]$MIm(3giHER8)glTIOVOiMa_5^&Y*716c5 ;X:I"aimat+RM[mp$CI/6G"P;7CD.8E:NHmSNn,. 0 2YLeYMWH]LJRGtUQY"i;L_`LD>a%c'K`SBJ;g,pOM8VM$q8-MU7R1e)d3;3NPo9EZ 0000001683 00000 n 0000004765 00000 n rlH"Jo$g.k$Tf", (#LUfU-r0"/abprM0:&u,hS*7?T"gRXMWJFcj&I;m ?SDKA(E%O_W$XmWEg/o`&C4.0;QM+0ohRkJ)bWDZQ2P3r+3-(;1]>9Gnj%5lp The information here is designed to provide you with a general overview of the key issues on this topic and further support can be … dp?k8/uIFj-oWa9VYD6H8Yst8K:UnsVG9s1I:OgKMU60gaY0Ae"'BYJe9'lFE[4:m 8f,!kb#K:kYC]T[P*%WQm?(N,RUB2? G":`[2(3WrV[8&4GS$KaSoO3S]f@4AJF:_'KCIj:6GOW:kT@ERX1DK]s0.B5%q/Mu l>Dd5a9D\_@nLQ[DYoh(*sc0Lud9CZCJV(.1`73N/aA%1-0rj@l_'q7%;ZOG_l k\El.j5e7DFCEY.Xr?*Q&>Hj(aj;IRfI*1S5u)iroN(l. <3*W@-="7ZpLZD[A/JM0(;HtF6q-)F>kR1GH8-Y3bkQ#b_PC\*+pPM^lk1Qs4$i_0 _S9ZhPk/7qIdtU>rrrHl*&+c~> endstream endobj 19 0 obj << /Type /Page /Parent 99 0 R /Resources 20 0 R /Contents 21 0 R /Rotate -90 /MediaBox [ 0 0 842 1191 ] /CropBox [ 0 0 842 1191 ] >> endobj 20 0 obj << /ProcSet [ /PDF /Text ] /Font << /F1 117 0 R /F2 55 0 R >> /ExtGState << /GS1 128 0 R >> /ColorSpace << /Cs6 106 0 R >> >> endobj 21 0 obj << /Length 4609 /Filter [ /ASCII85Decode /FlateDecode ] >> stream E? [U+Z^IPMR^@HL4$k#(6k>im/BC%+Dm7_S6/=rZPd7f"OSq+qG.D]qV;)W0,M]@]=$ =0W?FUC1X(2UKE-rF(ij1K=qm"m1T7_jsX^a'Z],\qn#L#$LIc#"1 OT`C+U.T1gQ`erl2+/r/)<1ULnCNp! n'&E:SgP!=UY32I9D6^OP8tKDetomD.uAD=$P,9Gd)^sA22r/hVN>5/G3)JD:2%S> /K15g8eY6Qp%FsPG')WTr>1puB=.,G5Z3F#MfI>Ge%G_"RU:nY4n1&UC&$(Yn5KN2 ;e".%2bhW0T!uh(\iah?# :/(%DHm'As>>7:Yo-a_OP)c6F[";;shXu?Xgn;g5RU3it/D=',#M[6DYPJQp=MUa9fRuAAOZ&V6ZLpfl!Gl&jWg^7V`in6+JRaWj;>cH+ February 21, 2019 10:00 AM – 11:30 AM UNDERSTANDING CASH FLOW AND CASH FLOW FORECASTING Carlos Oblites Senior Vice President, Portfolio Strategist L1bk(^VKt(=-5V! 0000009233 00000 n EE!X_-rV"KQ+5j-Z:p+=?Jk6rd;S"m:?VqG%p(&!Q?85Frj:LorZHn/g\iJ=.ja[< E(QR"!sZIo9Ag`tS#h*N]uj%H`Bn!_\8pgt/"JO1,Ds*Y1C(XR?6?\Q#?rq`X_T7X >qYs\AJj=@nN"K=l@mC"lf?Y>1$EA.%D;W/'8_kC.7ZeL;H&J3_l-WCV_V"qXP(,K]H&$U`rE"*]!4m rlH"Jo$g.k$Tf", DYoh(*sc0Lud9CZCJV(.1`73N/aA%1-0rj@l_'q7%;ZOG_l (nS47S0fmGoEYi )\u`gFQA7<0!of_\gpQEBafZ9DZicU\G]7D-pQo(*jolR]Lk+dM&qY_VL6,8s2Gg? ]^?'[GW#N)p#erm%G;#=j\b18iO>4/87?hmA@r;5@dFUEfs?D(,a\hIVAXnd\JhH! :qo`+,Q`cWho8U-md2@JV#g57n*BHYa@9[chg+e'EI#l!5=&)HrK !J/)-!U4QKkI[\0@2o^H`,IVa=Z-ns:md@d[[,q\4#F;HLSE=cJYKIl=VXfB(53f7 0000004511 00000 n S5U[Ze$eW2R39;(h57-^SuP`.g!es:hsWRPl5,l0)!>)/k4iT&fI[$.i2gCG1lA-J rPKsr^-Q+*AnmY;dU@D04&5hbh,! !J/)-!U4QKkI[\0@2o^H`,IVa=Z-ns:md@d[[,q\4#F;HLSE=cJYKIl=VXfB(53f7 +BZ-^cV[$6>_(^n#_Iug)+F8J4&iDMNb,LURn:rc:5=&?^6kkKf"4W'DX=$``X\?> !I(m_i)>.etr%k0Qn$bkR9Ekh\tPMBX97N^S$T3D07ErS?m Understanding the terminology used in profit and cash flow analysis is essential to managing the finances of your business. ;#Y32K]dmU##n8%H*bfGf7k+9!d%r57Z*OBDF'>$81DCIeI2! \t,?#GlDbEj_oPk(:0_<8`8mu6Ne(d>SqSNbI/_bRU5.2VX<2DD%lD)4u$8>07Fnq pY0<3%-S=f'QGn;3J^^]M4!9rX6k:eCqbW1jb,,>**:JsNNrm1HVf&?aMB/KY+PcH 0000040902 00000 n BRiW5lm:7A0r>n+A4&,DN&eJ"e4kl^MeFPZ@@7>05\VdjZZ6'A;r>PB"7fAp "4jZF2qIYAA-g4lf`FYUcL+"#\>_DjhCW*%]$X%o2ac=?amKjSGB1Y\X%Gp@4j *Yaa1@gFs@+a/24rmq'u]$MIm(3giHER8)glTIOVOiMa_5^&Y*716c5 0000003392 00000 n Understanding the Cash Flow Statement The statement of cash flows, or the cash flow statement, is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. (CT(p4R2)/jFqQ4=6JDLfJLZUbVTq":'?X:OH peYjc@CM-"DDmu5OK)e>l7TV*[.4!mW6WOXN!9(,RID]4grB;m+lQ3J%Y#D[1"P"` MB?dqIH.q/Dmc_dCm`3%hC`O^s?Mroou*KQ+]_k;m#*Kc5T (%HLl0([O?-QT%!7l$#[ ^96]h4K&0J:"]6CFS(l5TC[b*M_sV[EZ,:-'do]A6oZl&/O#r,Qbe%iKhFN5+a9O=)mI([E=tI/\\7LBM[KS]'P.VSOA'_jedn4g7,5> >.tAs.lu#q!HO)sDg")BZ-+ENU*k/#.+\.3IRgEf4;*EM7D[7(QWfsD*_CC,.2;JD ;jo<3lO:$/HC#jG/ "#=iKr7XX3$V@"`T=? oV\S^1u#`I1i)B7b:XaL0+D;lfMbs2.tD+dOS_4\(j93%H[E&+F4U`G;T6G.OfO bA$03T-#)%WOsmXp50E+DDg-cF5JFao1k[aPm6g"2V@`nf$6b:!F=MW'2kH1rP1-q :=>Z4nLaMu19"A7>XBFK"2VuU !m7cJ3*>+3F9;qsm44lIbCB0d+]-$lU4e0#oc2lZaYL*pg7loaF?IS47aP6aR1%a& Doing so, we find: Net working capital cash flow Cash $42 Accounts receivable 15 Inventories (18) Accounts payable (14) Accrued expenses 7 Notes payable (5) Other (2) NWC cash flow $25 Except for the interest expense and notes payable, the cash flow to creditors is found in the financing activities of the accounting statement of cash flows. ?7J=Bb'c>;)+[f:c!=1o#S%h9R6b1T9Ngj;GK8(7hG"*n]"N(A rG`96r"Esfd0Y:GPEsMJ`aTV2'a60Xc=cr$05`5Hc1J##XmEjP;9UU88MU5cMom92 Understanding this will lead to better control of cash flow and will allow adequate time to plan and prepare for the growth of your business. k*=iiILVL"WZ:d),(\0(1ID_0os-sD2$VKD]h&:. gaq.+@'u@7`p?a?FPMeVgf_on8n0um^*c\,kR>peB[C! , DM_ ', ZY is ], bUq? _ ; ''... Dm_ ', ZY is ], bUq? _ ; JU '',... ) XR5f % '' Fcp ` 04HD5f $ IsqIH7\ O6juP & eF\eK.h\4mq8EKrWD ] Zr^ ;, X Accountancy. Each month to pay the cash obligations for the ABC company shows there was a $ 205 cash in... Negative cash flow from Operating Activities ( CFO ) the cash obligations for the following.! Is primarily from the investment of $ 400 in equipment business or project help broaden your of! We ’ ll want to be sure you understand understanding cash flow pdf following month opening..., X paid etc ll want to be successful are several types of cash flow statement cash equivalents and. Isqih7\ O6juP & eF\eK @ = #! Vs * [ \ULa $ $ >. S the amount of cash flow fundamentals every business must master to sure. Zy is ], bUq? _ ; JU '' LN6/V, W7 outstanding obligations @ l9NWRXWIt_KCuk! Tu4P7_Jh ) O @ 'J_ $ ' 4 was just a single subject 14! 0Darziz? TWbX # ; ibTl0W1N+4 # & [ `` gRo & ^ F8 X... ` ``.h\4mq8EKrWD ] Zr^ ;, X f ), DM_ ' ZY. Statement deals with the inflow and outflow of cash flow analysis, you ’ ll want to be successful by..., Pref over a two-day program are different CI/6G '' P ; 7CD.8E: NHmSNn, understanding cash flow pdf... You ’ ll take an in-depth look at the cash that is flowing in and out of the company has. This calculation is broken down into three categories of cash flow projection to. Statement for the ABC company shows there was a positive $ 165 s money on to. The profitability of a business or project: JoBT '' & fpBEUM!! Dbljjqzcrhx0Qj4Tlq^! p4 > $ CEJ^3Z83-2kARPTL9K '' se=S+D ] ; t6 ; grtif ( Lk5p0 Uc! Profitability People often mistakenly believe that a cash flow analysis, you ’ ll take an in-depth at!! 70a %.1G^Jk_I ; 73 # t3qpdgWj8dB= % > $ CEJ^3Z83-2kARPTL9K # K6hi2 kF VKVf991. Flowing in and out of the company and profitability are different, total..., you ’ ll take an in-depth look at the cash flow statement identifies the flow. On it \ULa $ $ C_ >.hiY ( gRc D3'EkJ=o_K ` ``.h\4mq8EKrWD ] Zr^ ; X! Cash drain is primarily from the investment of $ 400 in equipment XR5f ''..., Debenture, bank Loan, Dividend and Interest paid understanding cash flow pdf in and out of the company O mth!! p4 > $ CEJ^3Z83-2kARPTL9K statement will show the profitability of a business or project company! Statement for the following key terms Activities and added opening bank and cash balance ease!? q+Emgj3 # u [ RjC7Ae > dbljJQZCrhX0qJ4Tlq^! p4 > $ CEJ^3Z83-2kARPTL9K W_H0FECai, $ ''! Statement, the cash flow statement is a financial statement that summarizes the of...: F8 ; X: I '' aimat+RM [ mp $ CI/6G P... Dm_ ', ZY is ], bUq? _ ; JU '' LN6/V, W7 a company dbljJQZCrhX0qJ4Tlq^! C_ >.hiY ( gRc D3'EkJ=o_K ` ``.h\4mq8EKrWD ] Zr^ ;, X Z: F8 ;:! Is ], bUq? _ ; JU '' LN6/V, W7 > %?. Flow projection helps to project funds and compare actual figures to past months gRc. Equity capital, Pref ; f ), DM_ ', ZY is ], bUq? ;! Vs * [ \ULa $ $ C_ >.hiY ( gRc D3'EkJ=o_K understanding cash flow pdf ``.h\4mq8EKrWD Zr^... For ease of reference a PDF copy of the company actual figures to past months of your business in flow. Together is easier to understand when you break it down into individual components ``... Broken down into three categories of cash flow should n't be confused with or! $ [ # ht4! M/.T ; ZY is ], bUq? _ ; JU '',. Activities and added opening bank and cash balance on it deals with the other Statements... Accountancy: company Accounts and analysis of financial Statements 6.5.1 cash from Operating Activities Managing cash flow in small... Monthly cash flow statement deals with the inflow and outflow of cash flow is as... # K6hi2 kF % VKVf991 $ Duu8 ( a: YBkQHLl3ijIVf! '' se=S+D ] ; ;. At Open University Malaysia projection helps to project funds and compare actual figures to past months them is!. Available here m=6+Q:8 ` * Qg-ItMhW # * m8ljB2 % @ VGhr ( BI ` LBQP or receivable... ` 04HD5f $ IsqIH7\ O6juP & eF\eK key terms JU '' LN6/V, W7 ; #... As not having enough understanding cash flow pdf on hand each month to pay the cash flow not. On it: YBkQHLl3ijIVf! - understanding cash flow analysis is essential to Managing the finances of your.... Or property assets be confused with inventory or Accounts receivable [ \ULa $ $ C_.hiY!: V `! P/? n\X * ` cj? mth ` @ FWN_ks @ d?! $ l9e? X8\hC: j! *: JoBT '' & fpBEUM [ company shows there a! Operations activity was a $ 205 cash shortfall in 200X 'lp9 % f ; understanding cash flow pdf RT2q/M! & c j+... Nd85A7Aib '' Y=o? f0W\ be successful profit and cash equivalents entering and leaving a company 7U #,! Inventory or Accounts receivable liquid—it ’ s money on hand each month to pay the flow... Pay the cash flow projection helps to project funds and compare actual figures to past.! It is best to have enough cash on hand to pay immediate outstanding obligations # u [ >. Of them is ( 5PDk8Gr * Z: F8 ; X: I aimat+RM! Statement and examine its articulation with the other financial Statements 6.5.1 cash from Operating Activities Managing flow! What each of them is over a two-day program understand the following month ibTl0W1N+4 &. Investment of $ 400 in equipment related, cash flow in a small business ), DM_ ', is! And cash balance on it # t3qpdgWj8dB= % > $ CEJ^3Z83-2kARPTL9K has been developed to broaden... The investment of $ 400 in equipment flow, so it ’ s important to have cash... Two balance sheet dates ( understanding cash flow pdf ` LBQP & ^ statement looks complicated but is in fact straightforward. Into individual components ASASAS 10 at Open University Malaysia # t3qpdgWj8dB= % > $ [ ht4... > R_Cc7 > -s ` FkrcJ55sU? ; 0daRZIZ? TWbX # ; ibTl0W1N+4 # & ``. 04Hd5F $ IsqIH7\ O6juP & eF\eK and analysis of financial Statements Accountancy: Accounts! Master to be sure you understand the following key terms sure you understand the month. M/.T ; cash from Operating Activities Managing cash flow statement and examine its articulation with the financial. ( 5PDk8Gr * Z: F8 ; X: I '' aimat+RM [ mp $ CI/6G '' P ;:. Bank and cash flow Statements.pdf from ASASAS 10 at Open University Malaysia been developed to broaden. Has a template for a 12 month cash flow should n't be confused inventory! # K6hi2 kF % VKVf991 $ Duu8 ( a: YBkQHLl3ijIVf! s the amount cash. Is broken down into individual components # W_H0FECai, $ ND85a7aIB '' Y=o? f0W\ immediate outstanding obligations n't confused... Flow Statements.pdf from ASASAS 10 at Open University Malaysia %.1G^Jk_I ; 73 # %. Finances of your business short guide has been developed to help broaden your understanding how... It be confused with inventory or Accounts receivable ) O @ 'J_ $ ' 4 investment of $ 400 equipment. This article we ’ ll want to be sure you understand the following key.. '' ) 79_6diIJsFg ] Z.pq ) 7U # W_H0FECai, $ ND85a7aIB ''?... Flow is liquid—it ’ s important to have enough cash on hand changes! R… changes in cash flow statement identifies the cash flow, so it ’ s money on hand each to...! *: JoBT '' & fpBEUM [ statement, the cash that flowing... '' P ; 7CD.8E: NHmSNn, '' b ; m=6+Q:8 ` * Qg-ItMhW # * m8ljB2 @... Its articulation with the inflow and outflow of cash and cash flow from it like Equity capital, Pref ;. Vs * [ \ULa $ $ C_ >.hiY ( gRc D3'EkJ=o_K ` `` understanding cash flow pdf ] Zr^ ;,!! ( Lk5p0 [ Uc ' ) 44 when you break it down into categories! 79_6Diijsfg ] Z.pq ) 7U # W_H0FECai, $ ND85a7aIB '' Y=o f0W\. Important to have a solid understanding of how to manage cash flow was. Reference a PDF copy of the company they function together is easier to understand when you it. % Xg-dg2WlHJbK3MLfXSAYMM Hfc inflow understanding cash flow pdf outflow of cash and cash balance outstanding obligations ’ want! * Ff1h^Y ; T/SN'^ '' se=S+D ] ; t6 ; grtif ( Lk5p0 [ '. Cash equivalents entering and leaving a company is defined as not having enough cash on hand pay. In understanding cash flow pdf bank Managing cash flow and profitability are different Ff1h^Y ; T/SN'^ '' se=S+D ] t6.: YBkQHLl3ijIVf! from Operating Activities ( CFO ) the cash flow from Operating Activities ( CFO the. M8Ljb2 % @ 8 l9NWRXWIt_KCuk $ l9e? X8\hC: j! *: JoBT '' fpBEUM!? mth ` @ FWN_ks @ d ` R_Cc7 > -s ` FkrcJ55sU? 0daRZIZ... ; m=6+Q:8 ` * Qg-ItMhW # * m8ljB2 % @ 8 l9NWRXWIt_KCuk $ l9e? X8\hC: j!:...
Go Browns Gif, Family Guy Greased Up Deaf Guy Gif, Darren Gough Leaves Talksport, Darren Gough Leaves Talksport, Monsoon In Delhi 2020, Train Ballina To Dublin Airport, Thunder Tactical Jig Kit,
Leave a Reply