I had to work on the income statement, the balance sheet and the statement of Owner's equity. Now I am on the statement of cash flow. The first thing I have to imput is Cash flows from Operating activities. Where I need to input is where it says Cash Received from customers. Where can I find this and also where can I find the amount that i am supposed to put in Deduct Cash payment for expenses and payments to creditors?
Thanks
To find the amount of Cash Received from customers, you will typically need to analyze your company's financial records or accounting system. Here's how you can go about finding this information:
1. Review sales records: Examine your sales records, such as invoices or cash receipts, to determine the total revenue generated from customers during the period you are analyzing. This will include any cash received from customers directly or through other means, like credit card payments or bank transfers.
2. Consider any adjustments: If there are any adjustments that need to be made to the total revenue figure, such as returns or discounts, take those into account and calculate the net amount received from customers.
3. Include non-operating items: When processing the statement of cash flow, it's important to focus on cash flows from operating activities. However, if your business receives significant non-operating cash inflows from customers, such as proceeds from the sale of assets or investments, you may need to separate them and disclose them separately in the statement.
Regarding Deduct Cash payment for expenses and payments to creditors, you will need to review your company's financial records to identify the relevant expenses and payments made during the period. Here's how you can find this information:
1. Analyze expense records: Review your expense records, such as invoices, receipts, or payment vouchers, to identify all the expenses incurred during the period. This can include items like rent, utilities, salaries, inventory purchases, etc.
2. Determine cash payments: Identify the amount of cash that was actually paid for each expense item during the period. Note that non-cash expenses, such as depreciation or amortization, should not be included in this calculation as they do not involve a cash outflow.
3. Include payments to creditors: If you made any payments to creditors for goods or services purchased on credit, include those amounts as well. This could include payments to suppliers or lenders.
Once you have determined the cash received from customers and deducted the cash payment for expenses and payments to creditors, you can calculate the net cash flow from operating activities and record it in the appropriate section of the statement of cash flow.