Non-Cash Transactions

Some investing and financing activities do not have any direct impact on cash flows. For example, conversion of debt to equity, acquisition of an enterprise by means of issuance of share, etc.

Those transactions should be excluded from cash flow statements, in which there are no use of cash or cash equivalents. There are other financial statements in which those investing and financing activities appear separately.

Format: (Direct Method)                                             

M/s ABC LIMITED Cash flow Statement for the year ended 31 March 2014
Particulars	Amount
Cash Flows from Operating Activities (Schedule- 1)	XX
Cash Flows from Investing Activities (Schedule- 2)	XX
Cash Flows from Financing Activities (Schedule-3)	XX
Extraordinary Items	XX
Net Profit before Tax	XX
Income Tax Paid	XX
Net Increase or Decrease in cash or cash Equivalents	XX
Add: Cash & Cash Equivalents at the beginning of the period	XX
Cash and Cash Equivalents at the end of the period	XXX

Schedule - 1

Cash flow from operating activities

Particulars		Amount
Cash received from customers		XXX
Cash paid for:
- Suppliers for Purchases	XX
- Wages & Salary	XX
- Operating and General administrative expenses	XX	XX
Net Profit before Taxes →		XX
Income Tax Paid →		XX
Cash flow from Operating Activities →		XXX

Schedule-2

Cash flow from investing activities

Particulars		Amount
Cash received for:
- Sale of Fixed Assets	XX
- Sale of Investment	XX
- Interest received	XX
- Dividend received	XX	XXX
Cash paid for:
- Purchase of Fixed Assets	XX
- Purchase of Investments	XX	XX
Net Cash Flow from Investing Activities →		XX

Schedule-3

Cash flow from financing activity

Particulars		Amount
Cash received for:	XX
Issue of Equity Shares	XX
Issue of Preference Share	XX
Long term borrowings	XX
		XXX
Cash paid for:
- Interest paid	XX
- Redemption of preference shares	XX
- Repayment of Loans	XX
Dividend paid	XX
Purchase of Investments	XX	XX
Net Cash Flow from Financing Activities →		XX