Cash Flow And Budgeting Analysis - Analysis of Cash Flow and Budgeting. A company's liquidity can be improved, costs can be reduced, and profits can be increased with good cash management.
The options for preparing Statement of Cash Flows are Direct and Indirect.
For the indirect method, preparer should note that there are a number of cells that have been programmed to be autosubtracted from the subtotals/total in this statement.
After filling in the statement, preparers may hide unused rows by using the “Untagged rows” function at the tool box for ease of view.
Below are a step-by-step guide and an illustration of how it should be filled.
M1 — After filling in all the adjustments to the profit (loss) before tax, ensure to check that the “Operating surplus (deficit) before working capital changes” is equal to the figure in the FS.
M2 — After filling in all the cash generated from (used in) operating activities, ensure to check that the “Net cash flows from (used in) operating activities” is equal to the figure in the FS.
