What Is Cash Flow Software?

The cash flow statement is one of the three basic reports of financial statements. It expresses the changes in the cash (including bank deposits) of an institution in a fixed period (usually monthly or quarterly).

Cash flow statement

The cash flow statement reflects the company's operating activities, investments in a certain period (such as monthly, quarterly or annual)

As an analytical tool, the main role of the cash flow statement is to determine a company's short-term viability, especially its ability to pay bills. It is a statement that reflects the dynamics of a company's cash inflows and cash outflows over a period of time. Its composition and

Fill in two main items in the cash flow statement:

After the new accounting standards were promulgated and implemented, the method of filling out the items of the cash flow statement has changed, especially the two main items of cash received for sales of goods and provision of labor services and cash for purchase of goods and receipt of labor services. There is a big difference in filling out the columns. This article makes a preliminary analysis of these two projects.

The basic filling formula is: the amount of this item = operating income + output tax + (opening balance of accounts receivable-closing balance of accounts receivable) + (opening balance of notes receivable-closing balance of bills receivable) + (advance account Ending balance of accounts-opening balance of accounts received in advance)-adjustment amount for bad debt provision-adjustment amount for bill transfer-adjustment amount for other special items.

(I) Fill in the operating income.

Under the new corporate accounting standards, operating income is the first item in the income statement. But some operating income does not generate cash flow: issued with inventory goods

The cash flow statement is

When drawing the consolidated cash flow statement, there are several ways to edit it.
The first is internal cash investment and acquisition of equity: when the subsidiaries or the parent and the subsidiary use cash to invest or acquire equity, this will correspondingly divert cash from the investor s funds to the investee, which belongs to Cash transfers within an enterprise can be offset accordingly, and can be included in the debit of the cash accounting account for investment payments and into the lender of the cash accounting account received for the investment.
Second, when internal cash is invested in equity or debt, the dividends and profits and interest paid between subsidiaries or between parent and subsidiary companies are essentially the transfer of cash within the group, and the preparation of consolidated cash In the flow statement, the corresponding offset can be made, which can be included in the debit of the cash accounting account for distribution of dividends, profits or interest payment, and the lender of the cash accounting account received for investment income.

In the process of production, operation, investment or financing activities of listed companies, the size of their cash flow reflects their ability to obtain cash. In general, there are many operating cash flows, which means that the sales of listed companies are smooth, and the capital turnover is fast. Not only does the product or project have a market, but it is in a good period of development, and vice versa.

Article 11 of the "Regulations on Financial Accounting Reports of Enterprises" states: "Cash flows are statements that reflect the inflow and outflow of cash and cash equivalents during the accounting period of an enterprise. Cash flows shall be classified according to the cash outflows of operating activities, investment activities and financing activities. Out. " Therefore, the cash flow statement is a useful supplement to the balance sheet and income statement.

Generally, the calculation of cash flow does not involve accrual basis, and accounting fraud is not easy. Just like a false contract can sign out profits, but signing no cash flow. When operating profits from related party transactions, there are often situations where there is profit in cash flow but no cash inflow. Therefore, using the net cash flow per share of operating activities to analyze the company's profitability is more objective than earnings per share.

However, after-tax profit per share and net cash flow are complementary, and some listed companies have good after-tax profit indicators, but the cash flow is insufficient, which is caused by the typical operating exchange of related profits. This phenomenon will be highlighted as the number of annual report publishers increases. Some listed companies sell assets during the year, and the phenomenon of a sharp increase in cash flow is not necessarily a good thing, which will affect the sustainable development of listed companies. Investors are best to choose stocks with high after-tax profit per share and net cash flow per share as a rational mid-line investment product. For example, ZTE, China Merchants, Chenming Paper, TCL Communications, and Minsheng Bank, which have published their 2002 statements, have not only increased earnings per share and asset income to varying degrees, but also have operating cash flow per share of 1.60 yuan. the above.

From the perspective of classic stock pricing theory, the stock price of a listed company is determined by the company's future earnings per share and the net present value of operating cash flows per share. Profit or loss is no longer the only important factor in determining the value of a stock. From the information reflected in the financial statements alone, cash flow is increasingly replacing net profit and has become an important criterion for evaluating the value of a company's stock. If cash is regarded as the "blood" of the daily production and operation of an enterprise, the cash flow statement is like a "blood test report" of a listed company. Through this report, you can clearly determine whether the daily production and operation of listed companies is healthy.

In addition to the above analysis of cash flow indicators, we should also pay attention to the accounts receivable turnover rate and inventory turnover rate, and combine all aspects of information provided by the balance sheet and income statement to analyze it. How to get cash and how to use cash. On this basis, further in-depth analysis of the company's financial situation, the quality of income, from which to find potential major financial risks, or to find high-performance profitable listed companies.

The contents of the cash flow standard are:

Chapter One

Article 1 In order to standardize the preparation and presentation of the cash flow statement, this standard is formulated in accordance with the Accounting Standards for Business Enterprises-Basic Standards.

Article 2 The cash flow statement refers to a statement that reflects the inflow and outflow of cash and cash equivalents of an enterprise during a certain accounting period.

Cash refers to the company's cash on hand and deposits that can be used for payment at any time.

Cash equivalents refer to investments held by enterprises with short maturities, strong liquidity, easy conversion to known amounts of cash, and low risk of value changes.

When referring to cash in this standard, unless it also refers to cash equivalents, it includes both cash and cash equivalents.

Article 3 The preparation and presentation of the consolidated cash flow statement shall be subject to the Accounting Standards for Business Enterprises No. 33-Consolidated Financial Statements.

Chapter II Basic Requirements

Article 4 The cash flow statement shall report cash flow separately for business activities, investment activities, and financing activities.

Article 5 Cash flows shall be reported separately according to the total cash inflows and cash outflows.

However, the following items may be presented on a net basis:

(1) Cash received or paid on behalf of customers.

(2) Cash inflows and cash outflows for projects with rapid turnover, large amounts, and short durations.

(3) Relevant projects of financial enterprises, including the principal of short-term loan issuance and recovery, the absorption and payment of demand deposits, the deposit and withdrawal of inter-bank deposits and inter-bank deposits, the borrowing and borrowing of funds from other financial companies, and the purchase and sale of securities Sell etc.

Article 6 Special items such as natural disaster losses, insurance claims, etc. shall be separately classified in the cash flow categories of operating activities, investment activities, and financing activities according to their nature and reported separately.

Article 7 Foreign currency cash flows and the cash flows of overseas subsidiaries shall be converted at the spot exchange rate on the date of cash flow occurrence or a rate determined in accordance with a systematic and reasonable method that is similar to the spot exchange rate on the date of cash flow occurrence. The impact of exchange rate changes on cash should be treated as a reconciliation item and presented separately in the cash flow statement.

Chapter III Cash Flow from Operating Activities

Article 8 An enterprise shall adopt the direct method to display the cash flow generated from operating activities. Operating activities refer to all transactions and matters other than corporate investment activities and fund-raising activities.

The direct method refers to the cash flow of operating activities through the main categories of cash income and cash expenditure.

Article 9 Information on cash flows from operating activities may be obtained through one of the following channels:

(1) Accounting records of the enterprise.

(2) Adjust operating income, operating costs and other items in the income statement based on the following items:

Article 10 The cash flow from operating activities shall at least separately list the items reflecting the following information:

(1) Cash received for selling goods and providing services;

(2) Refund of taxes and fees received;

(3) receiving other cash related to operating activities;

(4) Cash paid for purchasing goods and receiving labor services;

(5) Cash paid to and for employees;

(6) various taxes and fees paid;

(7) Pay other cash related to operating activities.

Article 11 A financial enterprise may reasonably determine the types of cash flow items for operating activities based on industry characteristics and actual cash flow conditions.

Chapter IV Cash Flows from Investment Activities

Article 12 Investment activities refer to the purchase and construction of long-term assets of an enterprise and investments and their disposal activities not included in the scope of cash equivalents.

Article 13 The cash flows from investment activities shall at least separately list the items reflecting the following information:

(1) Cash received for investment recovery;

(2) Cash received for investment income;

(3) Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets;

(4) Net cash received from disposal of subsidiaries and other business units;

(5) receiving other cash related to investment activities;

(6) Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets;

(7) Cash paid for investment;

(8) Obtaining the net cash paid by subsidiaries and other business units;

(9) Pay other cash related to investment activities.

Chapter V Cash Flows from Financing Activities

Article 14 Financing activities refer to activities that cause changes in the size and composition of corporate capital and debt.

Article 15 The cash flow generated from financing activities shall at least separately list the items reflecting the following information:

(1) Cash received from absorbing investments;

(2) Cash received from obtaining loans;

(3) receiving other cash related to financing activities;

(4) cash paid for debt repayment;

(5) Cash paid for distribution of dividends, profits or interest payments;

(6) Pay other cash related to financing activities.

Chapter VI Disclosure

Article 16 An enterprise shall disclose in its notes the adjustment of net profit to

Gold flow information. At least the following items that adjust the net profit should be disclosed separately:

(1) provision for asset impairment;

(2) depreciation of fixed assets;

(3) Amortization of intangible assets;

(4) Amortization of long-term deferred expenses;

(5) Expenses to be assessed;

(6) Withholding expenses;

(7) Gains and losses on disposal of fixed assets, intangible assets and other long-term assets;

(8) Losses due to scrapped fixed assets;

(9) gains and losses from changes in fair value;

(10) financial expenses;

(11) Investment gains and losses;

(12) Deferred income tax assets and deferred income tax liabilities;

(13) inventory;

(14) Operating receivables;

(15) Operational payable items.

Article 17 An enterprise shall disclose the following information of the subsidiaries and other business units acquired or disposed of in the current period in the total amount in the notes:

(1) the acquisition or disposal price;

(2) The portion of the acquisition or disposal price paid in cash;

(3) Obtaining or disposing of cash received by subsidiaries and other business units;

(4) Obtaining or disposing of non-cash assets and liabilities classified by major categories of subsidiaries and other business units.

Article 18 An enterprise shall disclose in its notes major investment and fund-raising activities that do not involve current cash receipts and payments, but affect the financial status of the enterprise or may affect its cash flow in the future.

Article 19 An enterprise shall disclose the following information related to cash and cash equivalents in the notes:

(1) The composition of cash and cash equivalents and their corresponding amounts in the balance sheet.

(2) A large amount of cash and cash equivalents held by the enterprise but not used by the parent company or other subsidiaries within the group.