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How do you calculate premium on debentures in cash flow statement?
Wiki User
∙ 9y ago
Premium on debenture is shown in cash flow from financing activities because debentures are used to finance the business activities.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoPremium on debenture is shown in cash flow from financing activities because debentures are used to finance the business activities.
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Where does security premium come in cash flow statement?
Security premium is part of cash flow from financing activities
What is the journal entry for redemption of debentures which were issued at discount?
debit redemption of debentures accountcredit cash / bank
How you treat decrease in share premium in cash flow statement?
Decrease in share premium account is shown under 'Cash flow from financing' activities as this is related with issuance and buy back of shares
What is the advantage of the direct method of statement of cash flows?
It is easy to calculate
Why does the owner of a business calculate profit?
to reconcile the cash book balance with the balance on the bank statement
How do you calculate accruals and non-cash transactions in preparing statement of cash flows?
non cash transaction are adjusted while preparing for cash flow using indirect method.
What is prepared first is it cash flow statement or balance sheet and income statement?
The Income Statement must be prepared first because the Current Profit or Loss (from the Income Statement) is needed in the Equity section of the Balance Sheet to make it balance. Also, the current profit or loss is the starting point to calculate Cash from Operations needed for the Cash Flow Statement.
What is CFS Explain Enumerate the steps you preparing the Cash flow system?
CASH FLOW STATEMENT FUND FLOW STATEMENT 1 Cash flow statement takes into consideration only the changes in cash position between two balance sheet Fund flow statement is concerned with changes in working capital position between two balance sheet dates. 2 Cash from operation is calculated only by actual receipt and payment of Income and Expenditure Fund from operation is calculated by Adjusted Profit and Loss Account 3. It is more useful to management as a tool of financial analysis It is not more useful than cash flow statement 4. Whether there is inflow of cash there will be definitely be inflow of funds Sound fund position does not necessarily mean sound cash position. 5. Increase in current liabilities or decrease in current assets will increase in cash vice versa Increase in current liabilities or decrease in current assets will mean decrease in working capital. Steps in preparation of cash flow statement # Openign of accounts for non-current items (to find out the hidden information) # Preparation of adjusted P & L Account (to find out cash from operation or profit, and cash lot in operation or loss). # Comparison of current items (to find out inflow or outflow of cash). # Preparation of Cash Flow Statement. To prepare Account for all non-current items is easier for preparaing Cash Flow Statement. Cash from operation can be prepared by this formula also. Net profit + Decrease in current assets increase in current liabilites - Increase in Current Asstes Decrease in Current Liabilities. Cash flow statement canbe prepared in statement form or account form. The cash flow statement is given below. Cash Flow Statement Inflow of Cash Out flow of cash Opening of Cash Balance xxx Redemption of Pref. Shares xxx Cash from Operation xxx Redemption of Debentures xxx Sale of Assets xxx Repayment of loans xxx Issue of debentures xxx Payment of dividends xxx Raising of Loans xxx Pay of Tax xxx Collection from Debenture xxs Cash lost in Operations xxx Refund of Tax xxx Xxx xxx CASH FLOW STATEMENT FUND FLOW STATEMENT 1 Cash flow statement takes into consideration only the changes in cash position between two balance sheet Fund flow statement is concerned with changes in working capital position between two balance sheet dates. 2 Cash from operation is calculated only by actual receipt and payment of Income and Expenditure Fund from operation is calculated by Adjusted Profit and Loss Account 3. It is more useful to management as a tool of financial analysis It is not more useful than cash flow statement 4. Whether there is inflow of cash there will be definitely be inflow of funds Sound fund position does not necessarily mean sound cash position. 5. Increase in current liabilities or decrease in current assets will increase in cash vice versa Increase in current liabilities or decrease in current assets will mean decrease in working capital. Steps in preparation of cash flow statement # Openign of accounts for non-current items (to find out the hidden information) # Preparation of adjusted P & L Account (to find out cash from operation or profit, and cash lot in operation or loss). # Comparison of current items (to find out inflow or outflow of cash). # Preparation of Cash Flow Statement. To prepare Account for all non-current items is easier for preparaing Cash Flow Statement. Cash from operation can be prepared by this formula also. Net profit + Decrease in current assets increase in current liabilites - Increase in Current Asstes Decrease in Current Liabilities. Cash flow statement canbe prepared in statement form or account form. The cash flow statement is given below. Cash Flow Statement Inflow of Cash Out flow of cash Opening of Cash Balance xxx Redemption of Pref. Shares xxx Cash from Operation xxx Redemption of Debentures xxx Sale of Assets xxx Repayment of loans xxx Issue of debentures xxx Payment of dividends xxx Raising of Loans xxx Pay of Tax xxx Collection from Debenture xxs Cash lost in Operations xxx Refund of Tax xxx Xxx xxx CASH FLOW STATEMENT FUND FLOW STATEMENT 1 Cash flow statement takes into consideration only the changes in cash position between two balance sheet Fund flow statement is concerned with changes in working capital position between two balance sheet dates. 2 Cash from operation is calculated only by actual receipt and payment of Income and Expenditure Fund from operation is calculated by Adjusted Profit and Loss Account 3. It is more useful to management as a tool of financial analysis It is not more useful than cash flow statement 4. Whether there is inflow of cash there will be definitely be inflow of funds Sound fund position does not necessarily mean sound cash position. 5. Increase in current liabilities or decrease in current assets will increase in cash vice versa Increase in current liabilities or decrease in current assets will mean decrease in working capital. Steps in preparation of cash flow statement # Openign of accounts for non-current items (to find out the hidden information) # Preparation of adjusted P & L Account (to find out cash from operation or profit, and cash lot in operation or loss). # Comparison of current items (to find out inflow or outflow of cash). # Preparation of Cash Flow Statement. To prepare Account for all non-current items is easier for preparaing Cash Flow Statement. Cash from operation can be prepared by this formula also. Net profit + Decrease in current assets increase in current liabilites - Increase in Current Asstes Decrease in Current Liabilities. Cash flow statement canbe prepared in statement form or account form. The cash flow statement is given below. Cash Flow Statement Inflow of Cash Out flow of cash Opening of Cash Balance xxx Redemption of Pref. Shares xxx Cash from Operation xxx Redemption of Debentures xxx Sale of Assets xxx Repayment of loans xxx Issue of debentures xxx Payment of dividends xxx Raising of Loans xxx Pay of Tax xxx Collection from Debenture xxs Cash lost in Operations xxx Refund of Tax xxx Xxx xxx
What financial statement would show the amount of cash generated by operations?
The cash flow statement.
What does a statement of cash flows show?
A statement of cash flows is also called a cash flow statement. The statement of cash flows is a cash basis report that shows the inflows and outflows of cash for the operating, investing and financing resources of a business.
What is cash-flow statement?
Cash flow statement is the statement which show the cash flow from operating, financing and investing activities.
What is the value of agway stock?
I have agway subordinated debentures. How do I cash them in? Also 1 share of agway stock.
