The author, based on practical experience, proposes a method of fast preparation of cash flow statement to discuss with readers, the data source of this preparation method is mainly based on the two main schedules, and only obtains the necessary data from the related books, in order to achieve the purpose of simple and fast preparation of cash flow statement. The preparation method proposed in this paper starts from the principle of materiality and sacrifices accuracy for speed. Preparation of the statement of cash flows in the following order from easy to difficult to complete the preparation of fast:
First, fill in the supplementary information in the "net increase in cash and cash equivalents" items, and determine the "net increase in cash and cash equivalents".
Secondly, the items "Cash flows from financing activities" in the main table are presented and "Net cash flows from financing activities" is determined.
Thirdly, fill in the items of "Cash flows from investing activities" in the main table and determine the "Net cash flows from investing activities".
The fourth calculation to determine the net cash flow from operating activities, the formula is: net cash flow from operating activities = net increase in cash and cash equivalents - net cash flow from financing activities - net cash flow from investing activities. The difficulty in preparing the statement of cash flows lies in determining the net cash flows from operating activities, as financing activities and investing activities are relatively few in the business of the enterprise and financial data are easy to obtain, the cash flow items of these two activities are easy to fill in and easy to ensure that the results of the net cash flows from these two activities are correct, and thus the net cash flows from operating activities calculated according to the formula is easy to ensure that they are also correct. The results of this step can verify that the main table and supplementary information in the "net cash flows from operating activities" items are correctly stated.
Fifth, fill in the supplementary information in the "reconciliation of net profit to cash flow from operating activities" items, and the results of the calculation and the fourth step of the formula for consistency with the results of the formula, such as inconsistency, and then check for eventual consistency;
Sixth, the final fill in the main table of the "cash flow from operating activities" in the main table. Cash flow from operating activities" in the main table, and the results of the calculation and the fourth step of the formula to verify the results, such as inconsistent, and then check for eventual consistency. Because this item "other cash received in connection with operating activities" item is squeezed backwards, so the main table and additional information in the "net cash flow from operating activities" is equal, so as to quickly complete the preparation of the cash flow statement.
The following detailed description of the preparation method and formula for each item in the above order:
I. Determination of supplementary information "net increase in cash and cash equivalents"
Cash ending balance = balance sheet "money funds Closing balance of cash = Balance Sheet "Money Funds";
Beginning balance of cash = Balance Sheet "Money Funds" opening balance;
Net increase in cash and cash equivalents = Closing balance of cash - Beginning balance of cash.
General enterprises rarely have cash equivalents, so the formula does not take into account this factor, if any should be filled out accordingly.
Second, to determine the main table of "net cash flow from financing activities"
1. Cash received from the absorption of investment
= (paid-in capital or equity at the end of the period - paid-in capital or equity at the beginning of the period) + (bonds payable at the end of the period - bonds payable at the beginning of the period)
This formula does not take into account this factor, if any, should be entered accordingly. (Bonds payable at the end of the period - Bonds payable at the beginning of the period)
2. Cash received from borrowings
=(Short-term borrowings at the end of the period - Short-term borrowings at the beginning of the period) + (Long-term borrowings at the end of the period - Long-term borrowings at the beginning of the period)
3. Cash received from other financing activities
3. Cash received from other financing activities
4. p>
For example, cash receipts from penalties for failure of investors to pay equity on time.
4. Cash paid for debt repayment
=(Beginning of short-term borrowing - end of short-term borrowing) + (Beginning of long-term borrowing - end of long-term borrowing) (excluding interest) + (Beginning of bonds payable - end of bonds payable) (excluding interest)
4. Cash paid for debt repayment
=(Beginning of short-term borrowing - end of short-term borrowing) + (Beginning of long-term borrowing - end of long-term borrowing) (excluding interest)
5. p>
5. Distribution of dividends, profits or interest paid in cash
= dividends payable debit + interest expense + long-term loan interest + interest on construction in progress + interest on bonds payable - accrued expenses in the "accrued interest" credit balance -Discounted interest expense on bills
6. Other cash paid in connection with financing activities
such as cash paid for financing expenses, cash paid for finance leases, cash paid for the reduction of registered capital (acquisition of the Company's shares, the return of associated units of the joint venture investment, etc.), the purchase of fixed assets in the form of installments, in addition to the cash paid for the first installment. cash paid in installments other than the first installment payment, etc.
Three, to determine the main table of the "net cash flow from investing activities"
1. Cash received from the recovery of investments
= (short-term investments at the beginning of the period - short-term investments at the end of the period) + (long-term equity investments at the beginning of the period - long-term equity investments at the end of the period) -long-term equity investment closing number) + (long-term debt investment opening number - long-term debt investment closing number)
The formula, if the opening number is less than the closing number, it is accounted for in the item of cash paid for investment.
2. Cash received for investment income
=Income statement investment income - (interest receivable at the end of the period - interest receivable at the beginning of the period) - (dividend receivable at the end of the period - dividend receivable at the beginning of the period)
3. Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets
= credit balance of "fixed assets liquidation" + (intangible assets at the end of the period - intangible assets at the beginning of the period) + (other long-term assets at the end of the period - other long-term assets at the beginning of the period)
such as the recovery of the principal amount of finance lease equipment.
5. Cash paid for the acquisition and construction of fixed assets, intangible assets and other long-term assets
= (the end of the period of construction in progress - the beginning of the period of construction in progress) (excluding interest) + (the end of the period of fixed assets - the beginning of the period of fixed assets) + (the end of the period of intangible assets - the beginning of the period of intangible assets) + (the end of the period of intangible assets - the beginning of the period of intangible assets). intangible assets at the beginning of the period) + (other long-term assets at the end of the period - other long-term assets at the beginning of the period)
In the above formula, if the closing number is less than the opening number, it is accounted for in the item of net cash recovered from the disposal of fixed assets, intangible assets and other long-term assets.
6. Cash Paid for Investments
= (Closing amount of short-term investments - opening amount of short-term investments) + (Closing amount of long-term equity investments - opening amount of long-term equity investments) (excluding investment gains or losses) + (Closing amount of long-term debt investments - opening amount of long-term debt investments) + (Closing amount of long-term debt investments - opening amount of long-term debt investments) (excluding investment gains or losses) (opening number) (excluding investment gains or losses)
In this formula, if the closing number is less than the opening number, it is accounted for in the item of cash received from recovery of investment.
7. Other cash paid related to investing activities
If the investment is not in place on time penalties.
Determine the supplementary information in the "net cash flow from operating activities"
1, net profit
The project is based on the number of net profit in the income statement.
2. Provision for Asset Impairment
Provision for Asset Impairment = Cumulative amount of provision for asset impairment for the current period
Note: Bad debt losses directly written off are not included.
3. Depreciation of Fixed Assets
Depreciation of Fixed Assets = Depreciation in Manufacturing Expenses + Depreciation in Administrative Expenses
Or: = Ending Accumulated Depreciation - Beginning Accumulated Depreciation
Note: The reduction in depreciation due to foreign investment in fixed assets is not considered.
4. Amortization of intangible assets
= intangible assets (beginning of the period - end of the period)
or = cumulative amount of credit incurred on intangible assets
Note: Decrease due to outward investment in intangible assets has not been considered.
5. Amortization of Long-Term Amortized Expenses
=Long-Term Amortized Expenses (Beginning Number - Ending Number)
or=Accumulated Credit Incurred for Long-Term Amortized Expenses
6. Decrease in Amortized Expenses (Minus: Increase)
=Beginning Number of Amortized Expenses - Amortized Expenses End of period
7. Increase in accrued expenses (less: decrease)
=End of period for accrued expenses - Beginning of period for accrued expenses
8. Loss on disposal of fixed assets, intangibles, and other long-lived assets (less: gain)
Fill in based on the analysis of the fixed asset liquidation and non-operating expense (or income) ledger.
9. Loss on retirement of fixed assets
According to the analysis of fixed asset liquidation and non-operating expenditure ledger to fill in.
10, finance costs
= interest expense - discount interest on notes receivable
11, investment loss (less: income)
= investment income (debit balance is filled in with a positive sign, and credit balance is filled in with a negative sign)
12, deferred tax credits (less: debits)
= Deferred tax (closing number - opening number)
13, the reduction of inventory (minus: increase)
= inventory (opening number - closing number)
Note: the reduction of foreign investment in inventory has not been taken into account.
14. Decrease (Less: Increase) in operating receivables
＝Accounts receivable (Beginning number - Ending number) + Notes receivable (Beginning number - Ending number) + Prepayments (Beginning number - Ending number) + Other receivables (Beginning number (Beginning - Ending) + Amortized expenses (Beginning - Ending) - Allowance for bad debts ending balance
15. Increase (Less: Decrease) in operating payables
＝Accounts payable (Ending - Beginning) + Advance receipts ( Closing number - beginning of period) + notes payable (closing number - beginning of period) + wages payable (closing number - beginning of period) + benefits payable (closing number - beginning of period) + taxes payable (closing number - beginning of period) + other payables (closing number - beginning of period) Payments (closing number - opening number)
16, other
Generally no data.
V. Determine the main table "net cash flow from operating activities"
1, cash received from the sale of goods and services
= income statement of the income statement of the main business income × (1 + 17%) + income statement of the other business income + (notes receivable at the beginning of the period - notes receivable at the end of the period) (Beginning balance of notes receivable - Ending balance of notes receivable) + (Beginning balance of accounts receivable - Ending balance of accounts receivable) + (Ending balance of accounts receivable - Beginning balance of accounts receivable) - Ending balance of provision for bad debts of accounts receivable
2. Tax rebates received
=(Beginning balance of subsidy receivable - Ending balance of subsidy receivable) + Subsidy income + Accumulated credit incidence of income tax for the period
3. Cash received from other operating activities
=Credit incidence of non-operating income + Credit incidence of other operating income + Other receivables Receivables-related details of the current period credit occurrence + other accounts payable-related details of the current period credit occurrence + interest income on bank deposits (Formula 1)
Specific operation, because it is based on the two main tables and part of the ledger to prepare the cash flow statement, the data is difficult to accurately, the project is left to the final inverted squeeze to fill in the columns, the formula is:
Received from other cash related to operating activities ( Formula 2)
="Net cash flows from operating activities" in the supplementary information - {(1+2)-(4+5+6+7) }
Formula 2 backward squeezing of the data generated by the formula will not be too much of a difference in the results of formula 1 calculations.
4. Cash paid for goods purchased and services received
= [Income statement cost of doing business + (closing balance of inventories - opening balance of inventories)] × (1 + 17%) + other operating expenses (excluding taxes) + (opening balance of notes payable - closing balance of notes payable) + (accounts payable) (Opening balance of accounts payable - Closing balance of accounts payable) + (Closing balance of prepayments - Opening balance of prepayments)
5. Cash paid to and on behalf of employees
＝Current debit balance of "Salaries payable" account Accumulated amount of "Wages payable" + Accumulated amount of "Welfare payable" + Accumulated amount of "Pension insurance", "Unemployment insurance", "Housing fund", "Housing subsidy", "Housing fund", "Housing subsidy", "Housing fund", "Housing fund", "Housing fund", "Housing fund", "Housing fund", "Housing fund", and so on. Housing fund", "medical insurance" + "Labor protection fee" in the cost and manufacturing overheads schedule
6. Taxes paid
＝ "Taxes payable"
= Cumulative debit incurred in each account of "Taxes payable" for the current period + debit in each account of "Other accounts payable" + "Taxes" debit in "Administrative expenses" for the current period. Taxes", the cumulative debit amount of the current period + "other operating expenses" tax items
That is, the actual payment of various taxes and surtaxes, excluding input taxes.
7. Other cash paid in connection with operating activities
= non-operating expenses (excluding loss on disposal of fixed assets) + administrative expenses (excluding salaries, welfare payments, labor insurance premiums, non-employment insurance premiums, housing provident fund, pension insurance, medical insurance, depreciation, provision for bad debts or losses on bad debts, and taxes included in various taxes, etc.) + operating expenses, costs, and manufacturing overhead (excluding salaries, welfare payments, labor insurance premiums, and other expenses). Salaries, welfare costs, labor insurance premiums, standby insurance premiums, housing fund, pension insurance, medical insurance, etc.) + other receivables current debit incidence + other payables current debit incidence + bank charges
Sixth, the impact of exchange rate changes on cash
= exchange gains and losses
Seventh, the important notes
This paper proposes the statement of cash flows Preparation method, only the author based on their own practical experience summarized in a simple way, said its simple, because this method is only based on the balance sheet and income statement and part of the ledger preparation, and the actual business is intricate and complex, according to this paper's approach to the preparation of the statement of cash flows can not be fully reflected; according to the working paper method and the preparation of the T-accounts method, the workload and the workload is very large, which needs to do a good job of accumulating the usual in the In practice, the cash flow statement is an annual statement of accounts, usually there is no reporting requirements, most of the enterprise finance because of busy work, and neglect to do this basic work, are the end of the year when the final accounts of the temporary preparation, but there is no way to start, this paper method can temporarily solve the urgent need for these corporate finance staff.
The role of the cash flow statement in business decision-making, the management of the enterprises have not yet attracted great attention, corporate finance staff to prepare the table is also to cope with the completion of the accounting firms are also very difficult to audit or simply do not audit. Give full play to the role of the cash flow statement, there is a gradual process of understanding.
To accurately prepare the cash flow statement, the need for financial personnel usually do a good job of accumulating data on a monthly basis, the approach proposed in this paper is only a stopgap measure, from the perspective of the importance of considering the method of preparation of the cash flow statement can basically reflect the enterprise's cash flow situation to meet the needs of the basic decision-making enterprise. Readers can be based on the specific circumstances of each enterprise, the method to improve and supplement, in order to meet their own preparation habits and needs.
The preparation method proposed in this paper, engaged in the preparation of statements of financial personnel will soon be skilled, skilled generally within an hour to prepare the cash flow statement, the author's own fastest speed is 20 minutes.
The preparation method proposed in this paper, is rough, only suitable for the main business of the single main body of the enterprise, is not suitable for diversified business group enterprises and mergers and acquisitions, reorganization, foreign investment in frequent enterprises (can refer to draw on)