Cash flow statement

• IT
ARISES FROM THE LAST TWO STATEMENTS OF FINANCIAL SITUATION
AND THE LAST STATEMENT OF THE INCOME STATEMENT.
• It indicates the amount of funds that the company used in the
last period, as well as the financing sources
from which they obtained the resources, and
it also tells us where they were used.
• THE STATEMENT PROVIDES A BETTER
UNDERSTANDING OF THE COMPANY'S OPERATING,
INVESTMENT, AND FINANCIAL FLOWS AND
RECONCILES THEM WITH CHANGES IN ITS CASH AND
MARKETABLE SECURITIES DURING THE PERIOD.
evaluate the company's ability to generate cash and cash equivalents, as well as its liquidity needs. To
make economic decisions, users must evaluate the company's ability to generate cash and cash
equivalents, as well as the dates on which they are produced and the degree of relative certainty of their

GOALS
appearance.
Classify the fund flows of the period into operating, investing and financing
activities
Project the needs of the company and meet the objectives
 Show that profits are being realized (for example: that trade accounts receivable are
actually being collected).
IMPORTANCE
The company's ability to pay dividends to shareholders.
Ability to finance upcoming investments (which will generate more cash).

BENEFIT
IO
Provides information that allows users to evaluate changes in:
V Net assets;
V Financial structure (including liquidity and solvency);
V Ability to adapt to different circumstances and opportunities
that may arise.
Useful for assessing the ability to generate cash and cash
equivalents.
ELEMENTS OF THE FLOW STATEMENT
CASH
 EXAMPLE OF ELEMENTS
1) OPERATION ACTIVITIES: They derive fundamentally from the transactions that constitute the main
source of ordinary income of the entity. Among the elements to consider we have the sale and
purchase of merchandise, payments of public services, payroll, taxes, etc.
2)INVESTMENT ACTIVITIES:
Examples:
-payments for the acquisition of property, plant and equipment
-intangible assets and other long-term assets
-receipts from sales of property, plant and equipment, intangible assets and other long-term assets.
3) FINANCING ACTIVITIES:
Examples:
- collections from the issuance of shares or other capital instruments.
- payments to owners for acquiring or redeeming the entity's shares
OPERATION ACTIVITIES:
Customer collection: V (+/-)VCxC

CV(+/-)VE
Buys:

Payment to suppliers: C(+/-)VCxP

Operating jacks: GO(+/-)VCxP

Tax payment

V: sales

VCxC: Variation in accounts receivable

CV : Sales area

GO : Variation of stocks

C: Shopping

VCxP: Variance in accounts payable

GO: Operating expense

METHODS
Direct Method Indirect Method
The Direct Method presents cash movements
organized according to the main categories of
• Presents cash movements by adjusting the
payments and collections, which is why we have profit or loss more or less for those
Operating, Investment and Financing Activities. amounts that did not require cash.

CASH FLOW STATEMENT ( INDIRECT METHOD)

Funds from Operations :

Fosutodo dol jareclo 10500

M 15: Expenses not included in U505 of the Tmnbao Cnpitnl

Doprecinl nidoleuce 1050

Promiei nickobrablos 300

Less: Ingre5o5 que no kmroluorn movimlemb5 do chpnl de Erüb5o

Ulidad wenta machines ■1800
M « aummortee sndadopasioa ereudsetosop-oraelonales

Cuomit increasebypnr —1200

M t deminud n en ünlde do lot nefivoe tireudamet opemneonnlot diulinot do en
DHmimnei nda axhioneine 1 200
Less numonbo on 5anido do tes nctiDs dirculnntes opmnclonns. we dissect do cnjn

Increase euonts per cobrst •sow

Less drminuci nomankoca pahoneircunnto opporncomnea

Decreased neidomeds per papar -750

Total Cash From Operating Activities n:(n) 2.700

Funds from Financing Activities :

increase of eapitnl 5 700

Paoodivindondos .8 700
Total Elective Proven from Activiafrom Financing: (b) -0000

Funds from Investment Activities :

inmoto pee come mhqquinwein 4500
Egromo by bompra do lorreng -5.700
Total Elective From Investment Activities n. tea] -1.200

Cash Change: * +b+ e -1,500

 BASIC STRUCTURE

Operation activities
(+/-) Investment activities
(=) Surplus cash to apply or obtain in financing activities
(+/-) Financial activities
(=) Net increase or decrease in cash
(+/-) Adjustment to cash flow due to variations in the exchange rate and inflation levels
(+/-) Effective at the beginning of the period
(=) Effective at the end of the period
4 BASIC PRINCIPLES FOR CASH
MANAGEMENT

FIRST PRINCIPLE: SECOND

Whenever possible, PRINCIPLE:
inputs should Whenever possible,
INCREASE of
cash ACCELER tho
ATE cash se
receipts of

THIRD PRINCIPLE: FOURTH

Whenever possible, PRINCIPLE:
money outflows Whenever possible,
should DECREASE. money outflows
should be
DELAYED.
 EXAMPLE
1

1.-The Company La Marinera SA presents the balance sheets for the years 2009
and 2010, as well as the income statement for 2010.
STATEMENT OF FINANCIAL SITUATION LA MARINERA SA

2010 2009 Difference 2010 2009 Difference

ASSET PASSIVE

Non-Current Asset 48.752 52.966 Net Worth 89.858 85.999

Immobilized
Intangible 138 170 -32 Social capital 3.420 3.420 0
Inmobilized material 46.589 51.010 -4.421 Share Premium 3.657 3.657 0
Investment Property
431 0 431 Bookings 72.464 66.297 6.167
Investments
Financial to L/P 1.594 1.786 -192 Own actions -412 -423 11

Current active 76.370 77.713 Result of the excersice 6.316 8.305 -1.989
Stock 50.932 51.114 -182 Dividend at Cta (*) -1.069 -1.069 0
Customers 25.150 26.510 -1.360 Subsidies 5.482 5.812 -330
Banks 288 89 199 Non-Current Liabilities 13.299 15.528 0

Total Assets 125.122 130.679 Provisions at L/P 2.507 1.837 670

Debts to L/P 10.792 13.691 -2.899

Current Passive 21.965 29.152 0

(*) Dividend payment years you for both
Suppliers 15.614 12.601 3.013

are carried out in 2010 Debts Ent. Credit 4.852 15.122 -10.270
Debts with Company
—
STATEMENT OF INCOME Cash flow statement 2010

2010 1.-Financial Year Results Before Taxes 8.752

Sales 43.181 2.-Result Adjustments 7.908
a) Amortization 5.100
Sales costs -27.191 b)Variation of Provisions 670
c) Results from derecognition of fixed assets 824
Amortization -5.100
d)Decrease Financial Instruments 920
Results from disposals -824 e)Financial Expenses 394
3.- Current Capital Changes 4.555
Low Instr. Financial -920
a) Stocks 182
BAIT 9.146 b) Debts and other accounts receivable 1.360
c)Creditors and accounts payable 3.013
Financial results (**) -394
B.A.T. 8.752 4.- Other cash flows from operating activities -2.830
a)Interest payment (-) -770
Taxes -2.436 c)I charge interest (+) 376
Net profit 6.316 d) Tax Payments without profit -2.436
A.-ACT CASH FLOWS. EXPLOITATION
(1+2+3+4) 18.385
(**) This item is made up of: B- FLOWS
CASH ACTIVITIES INVESTMENT -2.976
Financial income 376 9.-Collections or payments for equity
Financial expenses -770 instruments 11

a)Amortization of equity instruments 11

10.- Collections and payments of financial
liability instruments -13.083
11.- Dividend payments -2.138
C- FLOWS
CASH ACTIVITIES FINANCE