Page 27 - Business Proposal
P. 27
Step 4: Make a Cash Flow Report
Based on the income statement and the comparison between the balance sheets of 2016 and 2017, we are able
to compile the cash flow report.
– CASH FLOW FROM BUSINESS ACTIVITIES (OPERATING ACTIVITIES)
Based on data from 2017 income statement that the company gets a profit of IDR. 19,000,000.
The following are examples of cash flow calculations from business operations.
Profit/Loss This period 19,000,000
Increase in Trade Charges (4,000,000)
Increase in Reserves of Trade Receivables 200,000
Increase in Inventory (4,000,000)
Decreasing Equipment 1,000,000
Vehicle & Building Depreciation Expenses 800,000
Decrease in Trade Debt (10,000,000)
Decrease in Rental Debt (10,000,000)
Total (7,000,000)
In the example being discussed, the reduction value of IDR. 7,000,000 was found
