Cash flow statements Flashcards
What is the cash flow from operating activities the equivalent of?
P&L
What is the cash flow from investing activities equivalent to?
Assets
What is the cash flow from financing the equivalent of?
Non-current liabilities and equity
How is operating handled?
- Start with PBT
- Work up P&L, adjusting for all accruals
- Use T accounts to work out tax and interest actually paid
- Work through current assets/liabilities section of BS to calc year on year cash mvmt
How is investing handled?
Work through asset section of BS, using T accounts to calc cash mvmt for year
How is financing handled?
Work through liability and equity section of BS, using T accounts to calc cash mvmt for year
In operating, how are non cash amounts dealt with?
Add back
How are receivables treated?
Receivables up - cash down
Receivables down - cash up
How are payables treated?
Payables up - cash up
Down - cash down
How are inventories handled?
Difference between years
Up - decrease cash
Down - increase cash
Are depreciation and amortisation cash movements?
No, add back in cash flow
Are finance costs cash movements?
No, take out of cash flow
Add back a charge
Deduct an income
Is P/L on disposal a cash movement?
No, take out
Add back loss
Remove gain
What is the order for working through a cash flow q?
P&L - accruals
SFP - current liabilities + assets
SFP - Non current assets
SFP - Liabilities + equity
How is investment income treated?
Take out of cash flow
