Page 169 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes Alternate Method

Figure 8.3

Comparison of Current items to determine the Inflow of Cash or Outflow of Cash

Figure 8.4

Increase in current assets Outflow of cash

Decrease in current assets Inflow of cash

Decrease in current liabilities Outflow of cash

Increase in current liabilities Inflow of cash

8.4 Preparation of Cash Flow Statement

The cash flow statement can be prepared either in statement form or in accounting format.
Inflow cash ( ) Outflow cash ( )
Opening cash balance XXXX Redemption of preference shares XXXX
Cash from in operations XXXX Redemption of debentures XXXX
Sale of assets XXXX Repayment of loans XXXX
Issue of shares XXXX Payment of dividends XXXX
Issue of debentures XXXX Payment of tax XXXX
Raising of loans XXXX Cash lost in operations XXXX
Collection from debentures XXXX
Contd...
Refund of tax XXXX
XXXX XXXX
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