STATEMENT OF CASH FLOW

Cash flow statement may provide considerable information about what is really happening in a
business beyond that contained in either the income statement or the balance sheet.  Analyzing
this statement should not present an intimidating task, instead it will quickly become obvious that
the benefits of understanding the sources and uses of a company’s cash far outweigh the costs of
undertaking some very straightforward analyses.

The Cash Flow Statement is divided into three distinct sections:

• Cash flow from operations
• Cash flow from investing activities
• Cash flow from financing activities

Statement of Cash Flows   

       

Cash Flow from Operating Activities 

Net Income  XXX,XXX 

Adjustments to reconcile net income to net 

     cash provided by operating activities: 

     Depreciation and amortization  XX,XXX 

     Changes in other accounts affecting operations: 

       (Increase)/decrease in accounts receivable  X,XXX 

       (Increase)/decrease in inventories  X,XXX 

       (Increase)/decrease in prepaid expenses  X,XXX 

       Increase/(decrease) in accounts payable  X,XXX 

       Increase/(decrease) in taxes payable  X,XXX 

     Net cash provided by operating activities  XXX,XXX 

    

Cash Flow from Investing Activities 

     Capital expenditures  (XXX,XXX) 

     Proceeds from sales of equipment  XX,XXX 

     Proceeds from sales of investments  XX,XXX 

     Investments in subsidiary   (XXX,XXX) 

       Net cash provided by investing activities  (XXX,XXX) 

    

Cash Flow from Financing Activities 

     Payments of long-term debt  (XX,XXX) 

     Proceeds from issuance of long-term debt  XX,XXX 

     Proceeds from issuance of common stock  XXX,XXX 

     Dividends paid   (XX,XXX) 

     Purchase of treasury stock  (XX,XXX) 

      Net cash provided by financing activities  (XX,XXX) 

    

    Increase (Decrease) in Cash  XX,XXX