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    S1-17-Mba ZC415 Fin ZC415-L19

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    Abi
    The document discusses the cash flow statement. It provides an example cash flow statement for PIOMA Plastics showing an opening cash balance of Rs. 13,300, closing cash balance of Rs. 8,300, and a decrease in cash balance of Rs. 5,000. It notes that a cash flow statement shows cash flow from operating, investing and financing activities and that these may be positive or negative. It also lists some questions one can ask when interpreting a cash flow statement, such as whether the company generated or lost cash from operations and how it financed gains or losses.

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    S1-17-Mba ZC415 Fin ZC415-L19

    Uploaded by

    Abi
    172 views10 pages
    The document discusses the cash flow statement. It provides an example cash flow statement for PIOMA Plastics showing an opening cash balance of Rs. 13,300, closing cash balance of Rs. 8,300, and a decrease in cash balance of Rs. 5,000. It notes that a cash flow statement shows cash flow from operating, investing and financing activities and that these may be positive or negative. It also lists some questions one can ask when interpreting a cash flow statement, such as whether the company generated or lost cash from operations and how it financed gains or losses.

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    S1-17-MBA ZC415 FIN ZC415-L19

    Original Title

    S1-17-MBA ZC415 FIN ZC415-L19

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    The document discusses the cash flow statement. It provides an example cash flow statement for PIOMA Plastics showing an opening cash balance of Rs. 13,300, closing cash balance of Rs. 8,300, and a decrease in cash balance of Rs. 5,000. It notes that a cash flow statement shows cash flow from operating, investing and financing activities and that these may be positive or negative. It also lists some questions one can ask when interpreting a cash flow statement, such as whether the company generated or lost cash from operations and how it financed gains or losses.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    172 views10 pages

    S1-17-Mba ZC415 Fin ZC415-L19

    Uploaded by

    Abi
    The document discusses the cash flow statement. It provides an example cash flow statement for PIOMA Plastics showing an opening cash balance of Rs. 13,300, closing cash balance of Rs. 8,300, and a decrease in cash balance of Rs. 5,000. It notes that a cash flow statement shows cash flow from operating, investing and financing activities and that these may be positive or negative. It also lists some questions one can ask when interpreting a cash flow statement, such as whether the company generated or lost cash from operations and how it financed gains or losses.

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    Contact Hour 19

    Cash Flow Statement


    MBA ZC415: Financial & Management Accounting
    09/10/2017
    BITS Pilani Instructor: Prof. Mahalakshmi Mudliar
    PIOMA PLASTICS
    Opening Cash Balance 13,300
    PIOMA PLASTICS Closing Cash Balance 8,300
    Decrease in Cash Balance (5000)
    PIOMA PLASTICS
    SCHEELER COMPANY
    SCHEELER COMPANY
    Healthy cash flow

    Positive cash flow from operating activities

    Negative cash flow from investing activities

    Positive or negative cash flow from financing activities (which may move back or forth over time)

    BITS Pilani, Deemed to be University under Section 3, UGC Act


    Interpreting the Statement of Cash Flows: Some
    Questions to Ask

    Did the company generate cash from operations?


    – What did the company do with the cash?
    Did the company lose cash in operations?
    – How did the company finance the loss of cash?
    How did the company finance capital expenditure and acquisitions?
    Did the company engage in major disposals?
    Does the company have reasonable financial flexibility?
    Did the company draw heavily on its cash?
    Does the company have large cash?
    How do you rate the company’s earnings quality?

    BITS Pilani, Deemed to be University under Section 3, UGC Act


    In short

    Change in Account Balance during Period

    Increase Decrease

    Current Subtract from Add to

    Noncash Assets net profit net profit

    Current Add to Subtract from

    Liabilities net profit net profit

    BITS Pilani, Deemed to be University under Section 3, UGC Act


    BITS Pilani

    Thank you

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