Cashflow workings

Question 1

What is the 4 step process for the statement of cash flow calculations ?

Answer 1

Step 1: Calculate receipts from customers
Accs Rec @ Beginning
+ total sales @ beginning
-Accs rec @ end

Step 2A: calculate inventory purchases
Cost of sales
+inventory @ end
-inventory @ beginning

Step 2B: calculate payments to suppliers
Accs payable @ beginning
+inventory purchases
-Accs payable @ end

Step 3: calculate payments to employees
Accrued wages @ beg
+wages expense for period
-accrued wages @ end

Step 4: payments for other expenses 
Other expenses @ beg 
\+ other prepaid expenses at end 
\+other expenses incurred (excl dep’n)
-other accrued expenses @ end 
- other prepaid expenses @ beg 

= Net cash flows from operating activities

Question 2

What calculation is done at the bottom of the bottom of the cash flow statement ?

Answer 2

Net cash flows for period
+ Bank @ beg
= Bank at end