Cash Flow Statement Examples with Solutions A statement that shows the inflow and outflow of cash during a particular period of time is known as a cash flow statement. A cash flow statement contains all payments and receipts in cash. It is a summary of sources and applications of cash during a specified period. The … Read more
Financing Activities in a Cash Flow Statement What are financing activities in a cash flow statement: Cash flow from financing activities is a category in a company’s cash flow statement that accounts for external activities that allow a firm to raise capital. It is the net amount of funding a company generates in a given time … Read more
Cash Flow From Investing Activities Cash Flow from Investing Activities includes the flow of cash which arises due to purchase or sale of fixed assets like land, building, plant & machinery, etc. It is an important aspect of growth and capital. It includes only cash transactions and not any credit transactions. Examples of cash flow … Read more
Cash Flow from Operating Activities Cash flow from operating activities indicates the amount of money a company brings in from regular business activities, such as manufacturing and selling goods or providing a service. It does not include long-term capital, borrowing cost, or investment costs. Cash Flow From Operating Activities Example Cash received from Debtors and … Read more
Cash flow statement is a statement that measures the inflows and outflows of cash and it summarizes the amount of cash and cash equivalents entering and leaving a company from various activities of an enterprise during a particular period of time. ‘Cash’ means the cash which is available in hand and any demand deposits with … Read more
Cash Flow Statements The cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents flowing in or out of the company during a specified period. It provides information regarding the sources and uses of cash and cash equivalents. Objectives of cash flow statement: One of the major objectives and … Read more
Profitability The profitability or financial performance is mostly summed up in the statement of profit and loss. Profitability ratios are determined to analyze the earning capacity of the business which is the result of the utilization of assets employed in the business. There is a close connection between the profit and the productivity with which … Read more
Activity Ratio Analysis Activity Ratio Analysis: Activity ratios are financial analysis tools used to measure a business’ ability to convert its assets into cash. These ratios are known as turnover ratios because they indicate the rapidity with which the resources available to the concern are being used to produce revenue from operations. The different types of … Read more
Solvency Ratio Analysis Solvency Ratio Analysis: It measures the ability of a business to survive for a long period of time. These ratios are very important for stockholders and creditors as these ratios assess the ability of the firm to meet its long-term liabilities. The solvency ratios are categorized into the following types : a) … Read more
Liquidity means the firm’s ability to meet its current liabilities. In other words, the ability of a business to pay its short-term debts is frequently referred to as the liquidity position of the business. Short-term creditors of the firm are generally interested to know about the liquidity position of the firm. The liquidity ratio is … Read more