Document
by Rivah Steenkamp
CASH FLOW STATEMENT
, The purpose of this guide is to assist students who are
in grade 11-12. It focuses mainly on CASH FLOW
STATEMENT.
Cash flow statement is a financial statement that
summarizes the inflows and outflows of a cash and cash
equivalents over a specific financial period. It indicates
the funds or cash that came into the business which is
inflow and how money is used or spent which is outflow.
KEY CONCEPTS:
Cash flow: The movement of money into the business.
Cash Inflow: Money received by the business which is
regarded as receipts such as loan, capital, sales and
debtors.
Cash Outflow: Money spent or used by the business
which is regarded as payments such as paying expenses
or a loan.
WHAT YOU NEED FROM THE FINANCIAL STAEMENTS IN
ORDER TO PREPARE THE CASH FLOW STATEMENT:
STATEMENT OF STATEMENT OF NOTES TO THE
COMPREHENSIVE FINANCIAL FINANCIAL
INCOME POSITION STATEMENTS
Depreciation Current assets Fixed Asset Note
Interest expense Current liabilities Share Capital
Net profit before SARS: Income Note
tax tax Retained Income
Income tax Shareholders for Dividends
dividends
Fixed assets
Fixed deposits
Ordinary share
capital
Non-current
liabilities