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How do you prepare a cash-flow statement?

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Answered 2007-08-10 17:51:37

A cash flow statement is basically a statement that explains how the cash will be flowing in to a company. For example considering construction industry the initial investment will be done by the contractor to begin with the project. As project progresses the number of activities that he will be doing in parallel will be more. Hence if a project is having a duration of a year or two, then the month wise amount spending for the activities to be carried out during that month has to be calculated over the entire period of the project. The cash flow for a typical construction industry or any other industry will be a S Curve. A S-Curve distributed evenly over the period of the project is preferable. Now in order to map the progress of the actual work

as against initial cash flow, just super pose this on to the original S-Curve. If the actual curve is below the original S-Curve then it indicates that the progress of work is below the original, and if it is above then it denotes that the progress is good and healthy.

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cash flow statement meaning and prepare

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Cash flow statement is a statement which shows all the cash inflows and outflows from operating, investing and financing activities for a fiscal year.

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Cashflow statement is preferably prepared after the balance sheet because it becomes much more easier to pick cashflow items from the bal. sheet than from individual ledgers.

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Cashflow Technologies was created in 1997.

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No, that is explained on the Statement of Changes in Owner's Equity. However, you do need to prepare a Statement of Comprehensive Income first in order to prepare the Statement of Changes.

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