Statement of Cash Flow

The statement case floe is provides the information about the inflow and outflow of business entity of during the accounting period.It also included both the cash receipt and payment.

PURPOSE OF CASE FLOW STATEMENT 
The main purpose case flow statement is to provide the information about the company gross receipt and gross payment of during the accounting period.
the ability to generate positive case flow in future period of time.
the ability to meet is obligation and to pay the dividend.
it needs for external financing.

CLASSIFICATION OF CASH FLOW
Operating Activities
the case flow statement is being with operating activities.its included the case effect of those transaction reported in the continue operating section in income statement.
Investing Activities
case flow relating to the investing activities present the case affect of transaction involving fixed assets. intangible assets and investing.
Financial Activities
The final stage of case flows statement is financing activities.The include the activity that involve the company owner and creditor.

METHOD OF CASE FLOWS STATEMENT
1:Direct method
2:Indirect method

FORMATE OF DIRECT METHOD

  CO. NAME
                               STATEMENT OF CASE FLOWS
                            FOR THE YEAR ENDED DEC.31,2010
CASH FLOW FROM OPERATING ACTIVITIES
case receive from customers                                        $ xxxxx
case paid for purchase of merchandise                             xxxx
case payment for expenses                                               xxx
case paid to suppliers and employees                                xxx
case payment for interest and taxes                                   xxx
Net cash flow from operating activities                                       xxxxxxx
CASH FLOWS FROM INVESTING ACTIVITIES
purchase of marketable security                                       xxxxx
sale of marketable security                                               xxxxx
loan made to borrow                                                        xxxx
collection of loan                                                              xxxx
purchase/sales of assets                                                   xxxx
Net cash flows  from operating activities                                     xxxxxxx
CASH FLOW FROM FINANCING ACTIVITIES
Proceed from short term borrowing                                 xxxx
proceed from issued capital                                             xxxx
dividend paid                                                                   xxx
Net cash flows from financing activities                                       xxxxxx
cash & cash equivalent  Jan.1,2010                                              xxxxx
cash$cash equivalent  Dec.31,2010                                             xxxxx