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#CASHFLOW 101 USE BANK LOANS TO WIN PROFESSIONAL#

In today’s digital era, there’s no lack of apps and online lessons to teach personal finance. Even harder? Making the lessons engaging enough that kids will want to learn.Ī great solution is to use games to teach the core concepts of financial literacy. Topics might seem too advanced, and it’s tough to make them relevant when a child might not even have an allowance yet. In fact, it’s the best time.īut finding a way to teach financial literacy to children can be challenging. The computed balance at the end of the report is double-ruled.Childhood is a great time to begin learning about money. It signifies that a mathematical operation has been completed.

Good accounting form suggests that a single line is drawn every time an amount is computed.

Notice that the cash balance at the end, $ 21,000, is the same as the cash balance presented in the company's Balance Sheet.

Easy, right? In simple sense, this report presents the cash balance at the beginning of the period, the changes during the period, and the resulting balance at the end of the period. Then it is added to the beginning balance of cash to get the balance at the end.

After inflows and outflows are presented, the net increase or decrease in cash is computed.All inflows are presented in positive figures while all outflows in negative (in parentheses).Generally, financing activities include those that affect non-current liabilities and capital. withdrawal of owner/s and payment of loans) are also financing activities. Financing activities refer to: "where the company gets its funds", such as investment of the owner/s, and cash proceeds from bank loan and other long-term payables.In general, investing activities include transactions that involve non-current assets. Selling these properties are also considered investing activities. Investing activities may be summed up as: "where the company puts its money for long-term purposes", such as acquisition of property, plant and equipment and investment in long-term securities.Generally, operating activities refer to those that involve current assets and current liabilities.

#CASHFLOW 101 USE BANK LOANS TO WIN PROFESSIONAL#

Operating activities refer to the main operations of the company such as rendering of professional services, acquisition of inventories and supplies, selling of inventories for merchandising and manufacturing concerns, collection of accounts, payment of accounts to suppliers, and others.

Cash inflows and outflows are classified in three activities: operating, investing, and financing.

In the illustration above, the report presents inflows and outflows of cash for 1 year, i.e.

Notice that the third line is worded "For the Year Ended." This means that the information included in the report covers a span of time.

The first line presents the name of the company the second describes the title of the report and the third states the period covered in the report.

A typical cash flow statement starts with a heading which consists of three lines.

Cash inflows refer to receipts of cash while cash outflows to payments or disbursements.

Statement of Cash Flows presents the inflows and outflows of cash in the different activities of the business, the net increase or decrease in cash, and the resulting cash balance at the end of the period.

Net Increase (Decrease) in Cash for the Year Cash paid to acquire additional equipmentĬash paid to bank for partial loan repayment