Cash Flow Statement

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Hi All
does anyone have notes , tips or ideas , about how to work out the cash flow statement from begining to end , i just seem to be getting in a muddle about what gets subtracted and what gets added ?
Thanks In Advance
LM1

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Cash Flow Statement

    Sorry I don't have any notes to pass on, but the trick is to remember that this is a record of cash flowing in and out of the business. If you spend, it flows out, so deduct (eg tax payment, acquisitions). If you receive (eg share issue) it flows in, so add. I found the best way was to physically ask myself the question with each item, 'am I giving money out or receiving money in?'

    Hope I'm not teaching my grandmother to suck eggs!

    Jackie

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