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Sagot :
Answer:
To create a cash flow statement for a company for the year ended, you typically follow these steps:
Step 1: Start with the Net Income
- Begin by obtaining the company's net income for the year from the income statement.
Step 2: Add Back Non-Cash Expenses
- Add back any non-cash expenses such as depreciation and amortization to the net income.
Step 3: Adjust for Changes in Working Capital
- Calculate changes in working capital accounts (Accounts Receivable, Inventory, Accounts Payable, etc.) to determine the cash flow impact.
Step 4: Account for Investing and Financing Activities
- Consider cash flows from investing activities (e.g., purchase or sale of assets) and financing activities (e.g., issuing or repurchasing stock, debt).
Step 5: Calculate the Net Cash Flow
- Summarize the cash flows from operating, investing, and financing activities to arrive at the net cash flow for the year.
Step 6: Prepare the Cash Flow Statement
- Organize the cash flow information into the three main sections: Operating Activities, Investing Activities, and Financing Activities.
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