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Cash Flow Revised Format

Cash Flow Revised Format

Under the revised format, cash flow statement should be prepared in such a way as to report the cash flows during the periods separately for operating, investing and financing activities.

I           Cash Flows from Operating Activities

Net profitt earned during the year                                          xx

Add: Depreciation                                                                  xx

Loss on sale of machinery                                                       xx

Preliminary expenses written off                                            xx

Goodwill written off                                                              xx

Patents and copy right •mitten off                                         xx

Operating profit before working capital changes                   xx


Adjustment of working capital

(Add cash flow, less cash out flows)                                      xx

Decrease in current assets                                                       xx

Decrease in current liabilities                                                  xx

Increase in current assets                                                        xx

Increase in current liabilities                                                   xx

Cash flows from operating activities                                                  xx


II                     Cash Flows from Investing Activities                                 

Purchase of machinery                                                            xx

Purchase of land & building                                                   xx

Purchase of goodwill                                                              xx

Purchase of furniture                                                              xx

Sale of machinery                                                                   xx

Sale of furniture                                                                      xx

Interest on investment received                                              xx

Cash flows from investing activities                                                   xx


III                    Cash Flows from Financing Activities

Issue shares                                                                             xx

Issue debentures                                                                     xx

Loan borrowed                                                                       xx

Redemption of shares                                                             xx

Redemption of debentures                                                     xx

Loan repaid                                                                             xx

Dividend paid                                                                         xx

Interim dividend paid                                                             xx

Drawings                                                                                 xx

Net cash flows from financing activities                                            xx

Net increase or decrease in cash and cash equivalent                         xx

Add : Opening cash balance

(Adjust BOD if any given the problem)                                             xx

Closing cash Balance                                                                          xx

(Adjust BOD if any given the problem)

NOTE : In the question will specifically mention for the applying revised methods only, we follow the revised format otherwise better to follow Existing format.