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Statement of Cash Flows

Statement of Cash Flows

Duration: 20


·         Upon completion of the course, participants will be able to:

·         Distinguish between cash flows from operating, investing and financing activities.

·         Reconcile differences between net income and cash flow from operations.

·         Develop insights about the liquidity and solvency of a company

·         Help predict future cash flows by explaining the change in the cash balance as reported on the balance sheet.

·         Prepare a statement of cash flows using both direct and indirect methods.


Finance managers, financial controllers, chief accountants, accounting supervisors, financial and management accountants.

Course Outline:

·         Introduction to Financial Statements

-          The link between the three major financial statements – income statement, balance sheet and statement of cash flows

-          Structure of statement of cash flows – operating, investing and financing activities

·         Myth of “Profit” – I MADE PROFIT, BUT WHERE IS THE CASH?

-          Definition of “profit”

-          Subjective judgments influencing profit figures – provisions and accruals

-          Reconciling between profits and cash flow figures

·         Preparing statement of cash flows

-          Cash flow from operating activities – direct vs. indirect method

-          Cash flow from investing and financing activities