cash flow statement

Hayaa · #1 Apr 20, 2007, 03:55 AM

Hii alL

I have a question ?

I want to know how we comment in cash flow statement

thanks alot ..

Smith21000 · Apr 20, 2007, 09:29 AM

If your talking about non-cash financing and investing activities here a few examples:
Acquiring an asset through a capital lease or by incurring long-term debt.
Conversion of debt to equity.
Exchange of non-cash assets or liabilities for other non-cash assets or liabilities.
Issuance of ownership shares to acquire assets.
Obtaining an investment asset or a building by receiving a contribution.

Hayaa · Apr 20, 2007, 10:26 AM

Thanks aloOot for your answer Smith21000

But .. CaN you explaiN more i didn't get you stilL ?!

i have a cash flow statement and i want to comment for each activity there so how can i comment ? what should i say to comment that statement !!

Thanks again

Hayaa · Apr 20, 2007, 10:54 AM

THERE ARE THE SSTATEMENT:

Particulars 2004 2005 2006

operating activites:
cash receipts from customer 64767 110333 135056
cash paid to supplies & employees -44383 -79497 -106029

cash ganerated from operation 20384 30836 29027
net finance cost -968 -2781 -4517
income tax paid -482 -782 -3142

cash flows from operating activities 18934 27273 21368

Investing activies
acquisition of property plant & eqment -3591 -18655 -32868
proceeds 4rom sale of property plant & eqment 45 129 2209
proceeds from sale of investments in subsidiaries 0 1792 11
acquisition of investments & subsidiaries -866 -11193 -1247
divident received 182 21 263

cash flow from investing activities -4221 -27709 -31632

Financing activities
net receipt /repayment of term loans -11668 8017 6913
net repayment/ receipt from related parties 983 -1587 -112
cash dividends paid -1572 -2311 -5068
receipts from issue of equity share 0 6070 0

cash flow from financing activities -12257 10189 1733

NOW THE QUESTION IS: THIS CFS AS YOU SEE IT UP , I WANT TO KNOW HOW WE COMMENT IN IT , help me i need the anser today ?!!

Smith21000 · Apr 20, 2007, 11:31 AM

I can not help you comment on this without the balance sheet and income statement. For example you could say the company acquired 32,868 in new capital assets this year which is a 76% increase from the year before however the cash flow statement does not tell you how many assets you retired this year which is information i would want to know. Basically if your looking for quick comments ask yourself the question of why one item is up or down and figure out why. Examples

Why did you collect more cash from customers this year, did you have more customers or did you do a better job of collecting?

Why did you pay more to vendors, was it due to growth of the company or was it due to increased prices for products. (Volume is usual a good way to determine growth, not always revenue)

Why such an increase in PP&E? are we growing as a company, did we have a fire and need to replace assets, did a new technology in the industry create obsolescence with are PP&E.

These are just a few question I ask myself when i look at the statement, I wish i could be of greater help.

Hayaa · Apr 23, 2007, 12:03 AM

thanks aloOoOoT for helping me Smith21000 , god bless u



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