Cash flow statement is one of the financial statements prepared by the company for each financial period

In this part we are going to discuss cash flow statements from investing activities

Today we have a practical example to show how to make a cash flow statement . This requires more than one part

We have explained all the items of the cash flow statement in both direct and indirect methods

If the company has a net operating profits of 30millions and the operating cash flow statement is 10 millions . The quality of operating profits = operating cash flow ratio / operating profits .

The direct method is used in the company to be easily displayed and read by decision makers. As we clarified the difference between the direct 

In this article we will show the methods of preparing budgets for companies and projects . The budget consists of costs and revenues that are related to a particular project and are easy to follow their results independently through the company budget  . The project budget must match the  general  company budget    and of course the project uses all available resources in the departments such as marketing , financial accounting, production and human resources .

In part 2 we explained the net   earnings before tax  adjustments using the indirect method . In a CFO statement  the final number is the same if we used either methods ( the direct or indirect ) as the difference lies in the way of displaying the statement . In this article we are going to explain practically each term of the CFO statement .