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NAME OF THE COMPANY CASHFLOW STATEMENT FOR THE YEAR ENDED ( YEAR-ENDED)

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.