Cash Flow Statements
The Cash Flow Statement, also known as the Statement of Cash Flows, is a financial statement that provides information about the cash inflows and outflows of a company during a specific period. It presents the sources and uses of cash, allowing stakeholders to assess the company's ability to generate cash, its liquidity, and its operating, investing, and financing activities.
The Cash Flow Statement typically consists of the following sections:
Operating Activities:
This section reports the cash flows from the company's core operations, including revenues, expenses, and changes in working capital. It shows the cash generated or used in day-to-day business activities, such as cash received from customers, cash paid to suppliers, and payments for salaries, taxes, and other operating expenses.
Investing Activities:
This section shows the cash flows related to the company's investments in long-term assets and other investments. It includes cash flows from the purchase or sale of property, plant, and equipment (PP&E), acquisitions or disposals of subsidiaries or other businesses, purchases or sales of investments, and loans made to other entities.
Financing Activities:
This section reports the cash flows from the company's financing activities, including borrowing and repayment of debt, issuance or repurchase of equity shares, and payment of dividends. It shows the cash inflows or outflows associated with raising capital and returning capital to shareholders or lenders.
Net Cash Flow:
This section summarizes the net increase or decrease in cash and cash equivalents during the period. It is calculated by adding or subtracting the cash flows from operating, investing, and financing activities.
Cash and Cash Equivalents:
This section shows the beginning and ending balances of cash and cash equivalents, which include cash in hand, demand deposits, and short-term investments that are highly liquid and easily convertible to cash.
The Cash Flow Statement is prepared using either the direct method or the indirect method. The direct method directly reports the actual cash inflows and outflows from operating activities, while the indirect method starts with the net income and adjusts for non-cash items and changes in working capital to arrive at the cash flows from operating activities.
The Cash Flow Statement helps stakeholders understand how a company generates and uses cash, providing insights into its liquidity, cash management, and ability to fund operations, investments, and debt repayments. It complements the other financial statements, such as the Income Statement and Balance Sheet, in assessing a company's financial health and cash flow sustainability.
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WIMAX
COMPANY LIMITED |
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STATEMENT
OF CASH FLOWS- (DEMO SHEET) |
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FOR
THE YEAR ENDED JUNE 30, 2022 |
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30-06-2022 |
30-06-2021 |
30-06-2020 |
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Taka |
Taka |
Taka |
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1. |
Operating Activities |
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Net Profit/(Loss) during the year |
5000000 |
20,00000 |
(20,203,759) |
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Add: Adjustment for Depreciation |
3500000 |
1500000 |
52,448,502 |
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60,316,750 |
36,140,325 |
32,244,743 |
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Decrease / (Increase) in Current Asset |
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Inventories |
(100000) |
1200000 |
943,524 |
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Trade Debtors |
(540000) |
(560000) |
(8,551,195) |
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Advance, Deposit and Pre-payments |
(800000) |
(100000) |
(11,881,195) |
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Fire Insurance Claim Receivable |
450000 |
(220000) |
- |
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Current Account with Sister Concern |
- |
800,000 |
- |
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Increase / (Decrease) in Current Liabilities |
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Current Liabilities and Provisions |
1780000 |
220000 |
(10,024,392) |
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(4400000) |
15,0000 |
(29,513,258) |
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1300000
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140000 |
2,731,485 |
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2. |
Investing Activities |
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Addition of Non-Current Assets |
5000000 |
(20000) |
(89,679) |
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Loss on Fire
Non-Current Assets |
- |
2,944,098 |
- |
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Investment in FDR |
(457000) |
(300000) |
(44,374) |
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662000 |
2,650000 |
(134,053) |
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3. |
Financial Activities |
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Term Finance |
(300000) |
(4500000) |
(18,287,733) |
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Total (1 to 3) |
(4500000) |
3100000 |
(15,690,301) |
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Opening Cash and Bank Balance |
870000 |
(2600000) |
(7,653,729) |
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Closing Cash and Bank Balance |
(*********) |
******** |
(23,344,030) |
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(24,515,737.00) |
8,622,778.00 |
(23,344,030.00) |
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1,259,730.00 |
- |
- |
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