Examples- Cash sales of goods and services xxxx Advances from customers xxxx Collection from customers xxxx Payment for materials and services (xxxxx) Any taxes and duties (xxxxx)
Cash flow from Investing Activities
Examples- Sale of fixed assets xxxx Purchase of fixed assets (xxxx)
Cash Flow from Financing Activities
Example-Sale of shares and bonds xxxx Redemption of debentures (xxxxx) Buyback of shares (xxxxx) Payment of interest/dividends (xxxx) Net increase/decrease in cash xxxx Opening cash and cash equivalents xxxxx Closing cash and cash equivalents xxxxx Indirect Method- There will be a change in the way Cash from Operating Activities are calculated and other components will remain the same.
Cash flow from Operating Activities
Profit before income tax xxxx + Depreciation and amortization xxxx +Provision for doubtful debts/bad debts xxxx -Interest/dividend income (xxxxx) -Gain on sale of assets (xxxxx) + loss on sale of assets xxxx Operating profit before working capital changes Adjustment for working capital changes xxxx Cash generated from Operating Activities xxxx Income tax paid (xxx) Net cash generated from Operating Activities xxxxxx Cash Flow from Financing Activities Example-Sale of shares and bonds xxxx Redemption of debentures (xxxxx) Buyback of shares (xxxxx) Payment of interest/dividends (xxxx) Net increase/decrease in cash xxxx Opening cash and cash equivalents xxxxx Closing cash and cash equivalents xxxxx