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i have four years of balance sheet and income statement and now want to prepare cash flow statement from assets
Revaluation of inventory has no net effect on the cashflow statement as there has been no movement in cash. If the value of inventory is increased, the debit entry to inventory revaluation is negated by the credit entry to the revaluation reserve / shareholders' funds. If the value of inventory is decreased (more common), the credit entry to inventory writedown is negated by the debit entry as an expense or cost of sales item through the "statement of financial position" to retained earnings / shareholders' funds. Treatment and disclosure of course would vary depending on the materiality, timing, accounting standards applicable to the jurisdiction and legislative / regulatory requirements with which the entity is obliged to comply.
Interest received on marketable securities is shown as an increase of cash from investing activities in cash flow statement.
If you look at a statement of cash flows, you will see the reconciling items. For example, cash is reduced when you purchase capital assets or pay off a debt - these are not expenses. Collection of receivables increases cash but the income was recognized in an earlier period. There are also non-cash items on the income statement, such as depreciation - that is an expense without reduction of cash.
Depreciation do not increase or decrease the cash as it is just the presentation of actual cost of assets through income statement actual cash was already reduced when asset was purchased.
it is included in cash flow statement
Revaluation surplus is deducted from net income in case of net cash flow from operations using indirect method as this is not a cash related transaction.
i have four years of balance sheet and income statement and now want to prepare cash flow statement from assets
Revaluation of inventory has no net effect on the cashflow statement as there has been no movement in cash. If the value of inventory is increased, the debit entry to inventory revaluation is negated by the credit entry to the revaluation reserve / shareholders' funds. If the value of inventory is decreased (more common), the credit entry to inventory writedown is negated by the debit entry as an expense or cost of sales item through the "statement of financial position" to retained earnings / shareholders' funds. Treatment and disclosure of course would vary depending on the materiality, timing, accounting standards applicable to the jurisdiction and legislative / regulatory requirements with which the entity is obliged to comply.
Grocery spending
No profit or loss from sale of fixed asset goes into income statement while the cash proceeds goes to cash book.
Purchase of fixed asset is shown under cash flows from investing activities as an outflow of cash because purchase of assets is an investing activity and it causes reduction of cash flow.
Interest received on marketable securities is shown as an increase of cash from investing activities in cash flow statement.
This transaction would not appear on the statement of cash flows because it is a non-cash transaction. The statement of cash flows only shows transactions that involve inflows and outflows of cash.
The Statement of Cash Flows includes three different types of cash flows:Operating,Investing, andFinancingInvesting cash flows involve investments in other companies or investments in long-lived assets. They include:Purchases of long-lived assets;Proceeds from selling long-lived assets;Purchases of investments in other companies; andProceeds from selling investments in other companies.
interest is shown in cash flow from operating activities as cash outflow if interest is paid.
non- current assets