This article explains the Cash Flow Statement Report in Qoyod, which shows the cash impact of the activities your organization performed during a financial period, broken down into operating, investing, and financing flows.
Path in Qoyod
Reports › Cash Flow Statement
What the Cash Flow Statement is
A statement that shows the cash impact of all the organization’s activities during the financial period, along with the nature of that impact (cash inflow or outflow). Splitting the flows by their nature helps identify strengths and weaknesses in the organization’s ability to generate cash, which is used to settle obligations, fund expansions, and distribute profits.
Components of the Cash Flow Statement
Cash flow from operating activities
Cash flows generated by the organization’s core activities. They are calculated using the indirect method: adjusting net profit or loss for the impact of non-cash transactions, deferred items, and accruals related to past or future receipts and payments.
Cash flow from investing activities
Cash flows related to the sale and purchase of long-term assets.
Cash flow from financing activities
Cash flows related to obtaining resources from owners or returning them to them, as well as obtaining financing from lenders or repaying loans to them.
How the Report is calculated
- Determine the net cash flow for each activity (operating, investing, financing).
- Determine the net cash flows for the period by summing the net cash flow for each activity.
- Determine the net cash flow at the end of the period:
Net cash flow at the beginning of the period + net cash flow for the period.
- Verify that the net cash flow at the end of the period matches the net cash shown in the balance sheet at the end of the period.
Notes
- If the end-of-period balance in the Cash Flow Statement does not match the balance in the Balance Sheet, please review the manual Journal Entries and transactions recorded during the period.
