Houston Chambers
How to prepare an annual cash flow statement?
I have a project which to make the annual cash flow statement for XYZ company from their quarterly reports. Should I just add up amount of cash receipts and cash expenditures for all three sections because I was told there are some tricky things when someone does that? Your help is much appreciated. I know how to make them, but I am not sure whether or not I should add cash (receipts or expenditures) in quarter 1, quarter 2, quarter 3, and quarter 4 to figure out the annual cash (receipts or expenditures)
Public Comments
- The article below actually describes in detail how to prepare a cash flow statement. In the business world if you use Peachtree Accounting it prepares the cash flow statement for you. I presume you are an accounting student and this is an assignment.
- Generally, yes, you add the 4 quarterly reports, but not certain items. Your opening cash is the opening cash from the 1st quarter, and the ending cash is the ending cash from the 4th quarter.
