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Cash Flow Statement Format

Learn more about a cash flow statement Format.

Cash Flow Statement Format

Net cash flows from operating activities, plus or minus > Net cashflow from investing activities, plus or minus > Net cash flow from financing activities > Net increase or decrease in cash and cash equivalents over the period

Classified into three main sections reflecting major cash flow activities:

  • Operating activities: day-to-day activities including receipts and payments
    • Receipts from customers.
    • Payments to suppliers and employees.
  • Investing activities: relate to the acquisition and/or disposal of non-current assets (e.g. payments for plant and equipment) and investments.
  • Financing activities: relate to changing the size and/or composition of the financial structure of the entity (e.g. repayment of borrowings).

Over to you

Classify each transaction into an operating, investing, or financing activity, or a non-cash transaction and indicate whether it is a cash inflow or outflow.

  1. Credit purchases, $12 000.
  2. Cash paid to suppliers, $16 000.
  3. Credit sales, $21 000.
  4. Cash payments received on accounts receivable, $14 000.
  5. Salaries accrued, $2500.
  6. Machine purchased, $8000 cash.
  7. Depreciation expense, $2250.
  8. Rent received, $2000.
  9. Dividends paid, $3000.
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