Computation of net cash inflows and net cash outflows

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Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2017 How can i compute net cash inflows and net cash outflows from a cash flow statement (prepared in indirect method)
i know that positive values are inflows and negative values are outflows. but i am getting confused. for eg. in the year 2016 changes in long term borrowings is given Rs. (25,700) which is negative and in the year 2015 changes in long term borrowings is given Rs. 47,454 which is positive. so the same item (i.e. changes in long term borrowings) can be inflow and outflow?

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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28 June 2017 Loan taken is a positive long term borrowing, whereas loan repaid is a negative long term borrowing

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Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2017 But in the statement it is not mentioned weather it is loan taken or loan repaid. It is mentioned as "changes in long term borrowings". so if the value is positive then it means loan taken?

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Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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28 June 2017 Yes it means loan is taken

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Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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28 June 2017 If you are still confused than kindly refer the Long term borrowing ledger

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2017 Actually i am confused in another thing.If one item has a positive value in one year and the same item has a negative value in another year should i consider it as a inflow or outflow?

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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28 June 2017 Normally in cash flow positive means Inflow & Negative means cash outflow

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Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2017 Thank you for your help :)

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