Page 101 - Corporate Finance PDF Final new link

BRILLIANT’S Cash Flow Statement 101

or
Difference between closing balance and opening balance of P&L A/c -----
Add : Proposed dividend for the current year -----
Add : Interim dividend paid during the current year -----
Add : Transfer to Reserve -----
Add : Provision for Tax made during the Current Year -----
Less : Refund of Tax credited to P&L A/c (-----)
Less : Extra-ordinary item (if any) credited to P&L A/c (e.g., Insur- -----
ance proceeds from earthquake disaster settlement) (-----)
B. Net Profit before taxation and extraordinary item
C. Add : Adjustment for:
Depreciation -----
Interest on borrowings -----
Preliminary Expenses/Underwriting
Commission/Discount on issue of Debentures/Shares
written off NPP
Goodwill/Patents/Trademarks/Copyright amortized ------
Loss on sale of Machinery/ Land & Building/ Investments etc. -----
Premium payable on redemption of Preference shares/
Debentures ----- -----
D. Less : Items to be deducted: (For example) (-----)
Interest Income (-----)
Dividend Income (-----)
Rental Income (-----)
Profit on sale of Machinery/Land & Building,
Investments, etc. (-----) -----
E. Operating Profit before Working Capital Changes
(B + C – D) -----
F. Add : Decrease in Current Assets and increase in Current Liabilities :
Decrease in Stock -----
Decrease in Debtors/Bills Receivable -----
Decrease in Prepaid expenses -----
Decrease in Accrued Commission -----
Increase in Creditors for goods -----
Increase in Outstanding Expenses -----
Increase in Commission received in advance -----
Increase in Provision for Doubtful Debts or
Discount on Debtors ----- ----