plz specify the format of cash flow from operating activities......indirect method.how do we get net profit and how do we adjust such net profit
CASH FLOW FORMAT - BOTH DIRECT AND INDIRECT METHOD
Sandeep Pandey
(CA FINAL)
(1306 Points)
Replied 20 December 2010
Sharad Suman Das
(art)
(141 Points)
Replied 21 December 2010
Dear Ritesh,
while preparing cash flow statement, in its operating part youwill 1st have to adjust the non cash and non operating items that are apperring in the profit and loss account or given as the additonal information in order to get the net operating profit after that you will have to abjust the changes in the working capital.
for clear conception see the format from any book of classs 12( ISC or CBSE board)
nitish pawar
(article..)
(176 Points)
Replied 21 December 2010
Profit before tax. xxxx
Add: Non Cash expenses and expenses
which getting cover in other activites
Depreciation written off
Provison for Income Tax
Dividend
Interest on Debentures
Loss on sale of Fixed assets etc.
Less: Non Cash Income and Income
which getting cover in other activites
Apreciation of Asset
Income from investment
Profit on sale of FIxed Assets etc.
cash flow before working capital changes xxxxxx
add:decrese in current assets
increse in current liabilities
less: decrese in current liabilities
increse in current assets
cash flow after working capital changes xxxxxxxx
less: tax paid
cash flow from operating activity
ritesh
(ca -ipcc)
(61 Points)
Replied 21 December 2010
thanx all for your useful help it's worth appreciating................i would also like to know the treatment of capital resrve ,P&L a/c, bonus shares etc. in cfoa