Stenographer: Direct Method of Cash Flow Statement)

The preparation tips of the cash flow statement basically summarize the entire preparation process of the cash flow statement. I think you can deal with all kinds of problems as long as you fully understand them.

① Find income receivables, and separate uncollected taxes

② We can find and handle costs, so we can't neglect inventory changes.

③ The fees should be fully adjusted first, and the difference should be found later

④ There are exceptions to financial fees. Pay attention to the classification.

⑤ Direct conversion of income tax and external access to fixed assets

⑥ Bad debts, wages, depreciation, and amortization, where is reverse offset?

7. Separate payment for employees.

How can we understand each sentence? Don't worry. Let's look at it one by one.

The first sentence is the cash received by the provider of labor services for the sale of goods. Because the direct method is based on the operating income in the income statement, we need to find the receivables (accounts receivable, ). Uncollected taxes are then calculated separately (the value-added tax of money is used as cash flow) That is to say, the amount of tax payable included in the accounts receivable. If no cash is actually collected, the tax payable is credited, in addition, for the discount processing, the discount interest (included in the financial cost) arising from the discount of the bill is reversed.

In the second sentence, "Looking for handling costs and stock changes without negligence" tells you to look for accounts to cope with the "cash for purchasing goods" and consider the beginning of the inventory, the change value at the end of the period to check whether the changes are related to the project.

Clause ③ "the related fees are fully adjusted first, the difference is to adjust the amount of "management fee" and "sales fee" to "other cash related to business activities ". The six items are called back later. These six items are: Bad Debt Preparation, amortized expenses, accumulated depreciation, amortization of intangible assets, salaries of management personnel, and welfare expenses of management personnel (no adjustment is made to sales expenses ).

The forth clause "except financial expenses, pay attention to classification" refers to the above-mentioned discount interest.

The ⑤ sentence "direct income tax carry-over, seeking for fixed assets outside of business": direct income tax carry-over, non-business income, and non-business expenditure are all from fixed assets inventory profit and inventory loss, naturally, you need to find a fixed asset.

The sixth clause indicates that these items do not affect the cash flow, so it is enough to return in reverse order.

The cash items paid for and paid for employees are special and should be calculated separately. In general, there are three things to pay attention.