Page 115 - DCOM302_MANAGEMENT_ACCOUNTING

Management Accounting

Notes 2. Cash flow statement (Indirect method)
Cash Flow Statement (Indirect Method) (Accounting Standard-3 (Revised)

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Cash flow from Operating activities

Net profit before tax and extraordinary items xxx

Adjustments for:
-Depreciation xxx
-Foreign exchange xxx
-Investments xxx
-Gain or loss on sale of fi xed assets (xxx)
-Interest/dividend xxx

Operating Profit Before Working Capital Changes xxx
Adjustment for:
-Trade and other receivables xxx
-Inventories (xxx)
-Trade payables xxx
Cash Generated from Operations xxx
-Interest paid (xxx)
-Direct taxes (xxx)
Cash before Extraordinary Items xxx
Deferred revenue xxx
Net cashflow from operating activities (a) xxx

Cashflow from Investing activities
Purchase of fi xed assets (xxx)
Sale of fi xed assets xxx
Sale of investments xxx
Purchase of investments (xxx)
Interest received xxx
Dividend received xxx
Loans to subsidiaries xxx
Net cashflow from investing activities (b) xxx

Cashflow from Financing Activities
Proceeds from issue of share capital xxx
Proceeds from long term borrowings xxx
Repayment to fi nance/lease liabilities (xxx)
Dividend paid (xxx)
Net cashfl ow from fi nancing activities (c) xxx
Net Increase (decrease) in cash and cash equivalents during the period (a+b+c) xxx
Cash and cash equivalents at the beginning of the year xxx
Cash and cash equivalents at the end of the year xxx

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