Answer in Accounting for trushang #99611
A Cash Flow statement is a statement showing changes in cash position of the firm from one period to another. It explains the inflows (receipts) and outflows (disbursements) of cash over a period of time. The inflows of cash may occur from sale of goods, sale of assets, receipts from debtors, interest, dividend, rent, issue of new shares and debentures, raising of loans, short-term borrowing, etc. The cash outflows may occur on account of purchase of goods, purchase of assets, payment of loans loss on operations, payment of tax and dividend, etc.
Cash Inflow mean the cash which comes in from any sourse wheter its operating activity, Investing or financing.
Cash Outflow is opposite of Cash inflow.
Cash receipts: 45500 + 72500 = 118000.
Cash paid: 160000 + 595000 = (755000).
Net cash flow: 118000 – 755000 = (637000).