Ch12 Acc. - The Cash Flow Statement

Front 1

Cash Flow Statement

Back 1

An accounting report that details all cash inflows and outflows from Operating, Investing and Financing activities, and the overall change in the firm’s cash balance.
-Aids decision-making and planning.

Front 2

Operating/Investing/Financing Activities

Back 2

-Cash flows related to day-to-day trading activities
-Cash flows related to the purchase and sale of non-current assets
-Cash flows related to changes in the financial structure of the firm.

Front 3

Uses of the CFS

Back 3

-Aids decision-making about the firm's cash activities by detailing the sources and uses of cash in a particular period.
-Assesses the firm's performance in meeting its cash targets
-Assists in planning for future cash activities.
-Facilitate the calculation of financial indicators for analysis and interpretation.

Front 4

GST paid and received

Back 4

Operating inflows: GST Received, GST Refund
Operating outflows: GST Paid, GST Settlement

Front 5

Cash versus Profit: Cash and profit are different resources

Back 5

Main differences:
-Some cash items do not affect profit
-Some profit items do not affect cash
-Some items affect both cash and profit, but by differing amounts

Front 6

Cash items that do not affect profit

Back 6

Cash inflows that are not revenues
-Capital contribution
-Loan received
-GST received (including refund)
Cash outflows that are not expenses
-Cash drawings
-Loan repayments
-Cash payments for NCA
-GST paid

Front 7

Profit items that do not affect cash

Back 7

Revenues that are not cash inflows
-Stock gain
Expenses that are not cash outflows
-Stock loss
-Bad debts
-Depreciation

Front 8

Items that affect both profit and cash

Back 8

-Credit sales and Receipts from Debtors
-Cost of Sales and Payments to creditors/Cash purchases
-Other expense incurred and Other expense paid (e.g Accrued or Prepaid)