Swayam Siddhi College of Management and Research

Topic: Cash Flow Analysis

Subject : Financial Management

Submitted to: Sibhani Sir

Group Members:

Preeti Hemant Bharade 6015Virendra Kumar Chaudhari 6022Zaheer Khan 6080Shaikh Aarif 6144 Shaikh Quadir 6145Kamble Urmila 6145Prasad Chaudhary 6023Priyanka . N 6114Sandhya . K 6068Meghraj 6183

Cash Flow Analysis

Statement of Cash Flow Analysis

Importance of Cash Flow Analysis

Preparation of Cash Flow Statement

Preparation of Cash Flow Statement

Operating Activities• This section includes cash flows from the principal revenue generation activities such as sale and purchase of goods and services.

• Cash flows from operating activities can be computed using two methods.

• One is the Direct Method and the other Indirect Method.

Eg. Payments to Suppliers, Employees. 2. Cash received from customers through sale of goods or serivces performed.

Investing Activities• Cash flows from investing activities are cash in-flows and out-flows related to activities that are intended to generate income and cash flows in future.

• This includes cash in-flows and out-flows from sale and purchase of long-term assets.

E.g Cash payments to acquire property, plant. 2. Cash paid for investing in Shares, Debenture,etc. 3. Cash received for Sale of Goods.

Financing Activities• Financing Activities include cash activities related to noncurrent liabilities and owners’ equity.

• Noncurrent liabilities and owners’ equity items include :(1)the principal amount of long-term debt, (2)stock sales and repurchases(3)dividend payments. (Note that interest paid on long-term

debt is included in operating activities.)

E.g Cash received for issue of Shares. 2. Cash paid for repayment of loans.

Components of Cash Flow Statement

Calculating Cash Flow From Operating Activities

Direct Method

Cash Flow Operating Activities: Direct Method

Indirect Method

Cash Flow Operating Activities: Indirect Method

Uses of Cash Flow Analysis

Uses of Cash Flow Analysis

Analysis of Cash Flow Statement

Helps to Analyse :1.Cash Inflow Analysis2.Cash Outflow Analysis

Cash Inflow Analysis

Cash Outflow Analysis

Limitations of Cash Flow Analysis

Why do we use Cash Flow Analysis

Conclusion

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