Cash Flow Statement Format

Cash Flow Statement Format

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.