Some investing and financing activities do not have any direct impact on cash flows. For example, conversion of debt to equity, acquisition of an enterprise by means of issuance of share, etc.
Those transactions should be excluded from cash flow statements, in which there are no use of cash or cash equivalents. There are other financial statements in which those investing and financing activities appear separately.
Format: (Direct Method)
| M/s ABC LIMITEDCash flow Statement for the year ended 31 March 2014 | |
| Particulars | Amount |
| Cash Flows from Operating Activities (Schedule- 1) | XX |
| Cash Flows from Investing Activities (Schedule- 2) | XX |
| Cash Flows from Financing Activities (Schedule-3) | XX |
| Extraordinary Items | XX |
| Net Profit before Tax | XX |
| Income Tax Paid | XX |
| Net Increase or Decrease in cash or cash Equivalents | XX |
| Add: Cash & Cash Equivalents at the beginning of the period | XX |
| Cash and Cash Equivalents at the end of the period | XXX |
Schedule – 1
Cash flow from operating activities
| Particulars | Amount | |
| Cash received from customers | XXX | |
| Cash paid for: | ||
| – Suppliers for Purchases | XX | |
| – Wages & Salary | XX | |
| – Operating and General administrative expenses | XX | XX |
| Net Profit before Taxes → | XX | |
| Income Tax Paid → | XX | |
| Cash flow from Operating Activities → | XXX |
Schedule-2
Cash flow from investing activities
| Particulars | Amount | |
| Cash received for: | ||
| – Sale of Fixed Assets | XX | |
| – Sale of Investment | XX | |
| – Interest received | XX | |
| – Dividend received | XX | XXX |
| Cash paid for: | ||
| – Purchase of Fixed Assets | XX | |
| – Purchase of Investments | XX | XX |
| Net Cash Flow from Investing Activities → | XX | |
Schedule-3
Cash flow from financing activity
| Particulars | Amount | |
| Cash received for: | XX | |
| Issue of Equity Shares | XX | |
| Issue of Preference Share | XX | |
| Long term borrowings | XX | |
| XXX | ||
| Cash paid for: | ||
| – Interest paid | XX | |
| – Redemption of preference shares | XX | |
| – Repayment of Loans | XX | |
| Dividend paid | XX | |
| Purchase of Investments | XX | XX |
| Net Cash Flow from Financing Activities → | XX | |
