Show by example how to prepare a cash flow statement using a balance sheet?

Answer 1

This is pretty tough to do without actually having Excel or images of the balance sheet. The simplest starting point though is to start with net income and then take the difference between the assets and liabilities on the balance sheet. As assets go up, it means you didn't collect the cash or you paid cash to acquire the assets thus cash goes down. Conversely, if liabilities go up it means you didn't pay them so cash goes up. Then vice versa if assets or liabilities go down.