Cash Flow from Three Different Activities

1. Format of Cash Flow from Operating Activities

* Net profit before taxation and extraordinary items is calculated as:

2. Format of Cash Flow from Investing Activities

3. Format of Cash Flow from Financing Activities

Cash Flow Statement Format is prepared by taking operating, investing, and financing activities into consideration. All the transactions and information related to these three activities are summed up to prepare a cash flow statement format. The cash flow statement is a financial statement that provides information about the cash inflows and outflows of a business during a specific period.

One can prepare a cash flow statement if the two comparative balance sheets of a company are given. The transactions of a cash flow statement are categorised into three activities; namely, Cash flow from Operating Activities, Cash flow from Investing Activities, and Cash flow from Financing Activities. The Institute of Chartered Accountants in India has issued Accounting Standard AS – 3 revised for the preparation of cash flow statements. Besides, with the introduction of the Companies Act 2013, the preparation of a Cash Flow Statement is now mandatory for every type of company except OPC (One Person Company) [Section 2(40)].