The Principle of Preparing the cash flow statement with the indirect method
The basic principle of the indirect method of preparing the cash flow statement is to use net profit as the starting point and adjust it to the cash flow generated by operating activities. In this process, four major categories of projects needed to be adjusted: 1. The expenses that have not been paid in cash, such as the provision for asset impairments and depreciations. Although these items reduce the net profit, they do not affect the cash flow from operating activities. They need to be added back when calculating the cash flow from operating activities. 2. Earnings that do not receive cash: For example, investment income, etc., this kind of income will increase net profit, but it has nothing to do with cash flow from operating activities, so it should be deducted when calculating. 3. Gains and losses that do not belong to operating activities: For example, gains from disposal of non-current assets, gains from retirement of fixed assets, and gains from changes in fair value related to investment real estate and productive biological assets. Although these gains and losses affect net profit, they are not directly related to cash flows from operating activities. Therefore, corresponding adjustments should be made (such as deductions) during calculation. As for the financial income, it was necessary to distinguish whether it was related to business activities. The financial income unrelated to business activities should be deducted, and the relevant ones did not need to be adjusted. 4. Increase or decrease of operating items: The decrease of operating items will lead to an increase in cash flow from operating activities, but it is not included in the calculation of net profit, so it should be added back when calculating the cash flow from operating activities. The decrease of inventory or the increase of operating items should be added back when calculating the net profit, because it is deducted as an expense cost in the process of calculating the net profit, but it does not lead to cash outflows. From the perspective of the formula, assume that the cash flow generated from investment activities is T, the cash flow generated from fund-raising activities is L, and the monetary funds during the reporting period are (Assuming that there is no cash equivalent), the increment at the end of the period compared to the beginning of the period is C, the cash flow generated from operating activities is K, and the net profit is Y, then C = K+T+L. After a series of operations, K = Y -(Items unrelated to operating activities and reducing net profit)+(Items unrelated to operating activities but increasing cash flow from operating activities)-(Revenue related to net profit but not operating activities)+(adjustment of non-cash current assets and current obligations related to operating activities)-T-L. In general, the indirect method of preparing the cash flow statement was to adjust the net profit to obtain the net cash flow generated from operating activities, which played a role in mutual verification with the cash flow statement prepared by the direct method. Read more exciting novels for free
The Principle of Preparing the cash flow statement under the indirect method
The indirect method of preparing a cash flow statement starts from net profit and is adjusted to the cash flow generated from operating activities. The basic principle is that the net cash flow generated from operating activities is equal to the net profit plus the items that do not affect the cash flow from operating activities but reduce the net profit (such as asset valuation reserves and depreciations), minus the items that do not affect the cash flow from operating activities but increase the net profit (such as investment income), plus the items that have nothing to do with the net profit but increase the cash flow from operating activities, minus the items that have nothing to do with the net profit but reduce the cash flow from operating activities. Assuming that the cash flow generated from investment activities is T, the cash flow generated from fund-raising activities is L, and the increment of monetary funds (assuming that there is no cash equivalent) at the end of the reporting period is C, then C = K+T+L (K is the cash flow generated from operating activities). According to the accounting identity, the changes in assets, debts, and owner's equity are equal on the left and right sides of the balance sheet during each reporting period. The data of the cash flow statement is the arrangement of these changes. By setting the amount of change equal to the ending amount minus the beginning amount, listing the balance with the number of occurrences and rearranging the items, the expression of cash flow generated from operating activities can be obtained as: net profit minus prepayments, other payables, and other items, plus advance payments, taxes, and other items, minus the cash flow generated from investment activities, cash flow generated from fund-raising activities, and other related items (such as deducting fixed assets minus accumulated depreciations). In addition, when calculating the cash flow from operating activities, it is necessary to make adjustments for different situations. For example, the financial expenses incurred in the fund-raising activities that have nothing to do with operating activities (under specific circumstances) should be added back to the net profit; the investment income and non-current asset disposal income that have nothing to do with operating activities should be deducted from the net profit;(In the case of manufacturing enterprises that do not belong to operating activities), it should also be deducted from the net profit; The financial income related to operating activities should be differentiated whether to adjust; For non-cash current assets and current debt items related to operating activities, such as the decrease in inventory or the increase in operating items, they should be added to the net profit basis. The decrease in operating items should also be added to the net profit basis. <a href="/?from=ask_words" style="color:red" target="_blank">Read more exciting novels for free</a>
Preparing the cash flow statement in China's enterprises
There are many ways for Chinese enterprises to prepare cash flow statements: ** I. Master Table Establishment ** 1. ** Direct Method ** - The direct method was based on the company's cash on hand and bank deposits, which were classified one by one and finally attributed to various cash activities to form a cash flow statement. The advantage of this method was that it was extremely accurate, but the disadvantage was that it required a lot of work and was difficult to achieve in actual work. - In the preparation of cash flow from operating activities, such as cash received from selling goods and providing labor services, the calculation involves income from main business, income from other businesses, accounts Receivable, notes Receivable, accounts received in advance, cash, bank deposits, etc. The formula is: main business income + sales tax + other business income (excluding rent)+ accounts Receivable (beginning-end)+ notes Receivable (beginning-end)+ advance collection (end-end)+ recovery of bad debts written off in the previous period (this is not considered)-bad debt reserve withdrawn in the current period-bad debts written off in the current period-cash discount-bill interest discount expense-sales tax regarded as sales-reduction of repayment with goods + Received the premium. - In terms of cash paid for purchasing goods and accepting labor services, it was based on the main business cost, inventory, accounts payables, notes payables, prepayments, etc. The formula is: main business cost + input tax + other business expenses (excluding rent)+ inventory (end-beginning)+ accounts payables (end-end)+ notes payables (end-end)+ prepayments (end-beginning)+ inventory loss + project requisitioned, invested, sponsored inventory-receipt of non-cash-paid inventory-non-material consumption in cost (labor, water, electricity, and depreciations)-accepted investment, donated inventory-input tax as purchase + premium paid. 2. ** indirect method ** - The indirect method was based on the assumption that all the accounting accounts of the enterprise corresponded to monetary funds. Then, according to the nature of each account, the amount was attributed to various cash activities to form a cash flow statement. Its advantage was that it could quickly compile a cash flow statement. Its disadvantage was that it assumed that the amount of all accounts directly corresponded to cash, which would cause the data of each cash activity to be distorted, but the data of the major categories would be accurate. - The indirect method uses net profit as the starting point to adjust the factors that affect the net profit but do not affect the cash flow from operating activities, and adjust the factors that affect the cash flow from operating activities but do not affect the net profit, so as to achieve complete synchronization between net profit and operating cash flow. ** II. Preparing the attached table ** - Net profit is the starting point. It is used to adjust the factors that affect the net profit but do not affect the cash flow of operating activities, such as non-cash expenses such as depreciations and amortizations. It is used to adjust the factors that affect the cash flow of operating activities but do not affect the net profit, such as changes in inventory, changes in accounts Receivable and Payable, etc., so as to achieve complete synchronization between net profit and operating cash flow. At the same time, the data of "financial expenses" in the sub-table of the cash flow statement was not the "financial expenses" in the income statement. The "financial expenses" in the sub-table of the cash flow statement referred to the financial expenses related to fund-raising and changes in exchange rates. The "others" in the cash flow statement generally referred to the part of the operating activities corresponding to the "adjustment of profit and loss in previous years". If the "adjustment of profit and loss in previous years" referred to investment and fund-raising activities, it would not be reflected here. The preparation of the cash flow statement by an enterprise also needs to be based on relevant accounting standards, such as the "Enterprise accounting standards No. 31-cash flow statement", which is formulated according to the "Enterprise accounting standards-basic standards" to regulate the preparation and presentation of the cash flow statement. <a href="/?from=ask_words" style="color:red" target="_blank">Read more exciting novels for free</a>
The Method of Compiling the Construction Project's cash flow statement
The preparation of the cash flow statement of construction projects mainly involves the preparation of cash flows generated from operating activities, investment activities and fund-raising activities. ##I. The cash flow generated from operating activities 1. ** The cash received from selling goods and providing labor services ** - Usually, it can be calculated based on the changes in the beginning and ending balance of the main business income, other business income, notes Receivable, accounts Receivable, and accounts received in advance. For example, the main business income multiplied by (1 + the value-added tax rate), plus the other business income, then adding the opening balance of notes Receivable minus the ending balance of notes Receivable, the opening balance of accounts Receivable minus the ending balance of accounts Receivable, the ending balance of accounts received in advance minus the opening balance of accounts received in advance, and finally minus the ending balance of bad debt reserves of accounts Receivable. 2. ** Received tax refund ** - The calculation can be based on the difference between the beginning and ending balance of the subsidy account, the subsidy income, and the accumulated amount of the credit amount of the income tax in the current period. 3. ** Other cash received in relation to business activities ** - Including the details of non-operating income related to the credit amount of the current period, the details of other business income related to the credit amount of the current period, the details of the credit amount of the current period related to the other payables, the details of the credit amount of the current period related to the other payables, and the bank deposit interest income. In actual operation, due to the preparation of the two main tables and some subsidiary account books, the accuracy of the data is difficult. It can also be calculated by backward squeezing, that is, the "net cash flow generated from operating activities" in the supplementary information-{(1+2)-(4 + 5+6+7)}. 4. ** The cash paid for purchasing goods and accepting services ** - The calculation method is [Main business cost in the income statement +(inventory ending balance-inventory beginning balance)] ×(1 + value-added tax rate)+ other business expenses (excluding taxes)+(notes payable-ending balance)+(accounts payable-ending balance)+(prepayments ending balance-prepayments beginning balance). 5. ** cash paid to and for employees ** - Including the accumulated amount of the current period's debits in the "Payable" account, the accumulated amount of the current period's debits in the "Welfare Payable" account, the relevant insurance money and housing accumulation fund in the management fee, and the labor protection fee in the cost and manufacturing expense list. 6. ** Various taxes paid ** - It is the total sum of the current debits in the subsidiary accounts of "taxes payables","other payables","taxes" in "administrative expenses", and "other business expenses". Here are the actual taxes and additional taxes paid, excluding the input tax. 7. ** Other cash paid in relation to business activities ** - When calculating, you must consider non-operating expenses (excluding the loss of disposal of fixed assets), administrative expenses (excluding specific items such as wages and welfare fees), operating expenses and costs, manufacturing expenses (excluding specific items such as wages and welfare fees), other accounts due, and other accounts. ##II. The cash flow generated from investment activities 1. ** Recovering the cash received from the investment ** - It is calculated based on the difference between the beginning and the end of short-term investment, long-term equity investment, and long-term debt investment. If the beginning is less than the end, it will be accounted for in the cash paid for investment. 2. ** The cash received from the investment income ** - It is obtained by deducting the difference between the ending amount and the beginning amount of interest and the difference between the ending amount and the beginning amount of dividends. 3. ** Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets ** - It is the credit balance of the "fixed assets clearance" plus the difference between the ending amount of intangible assets and the beginning amount, and the difference between the ending amount of other long-term assets and the beginning amount. 4. ** Other cash received in relation to investment activities ** - For example, recovering the capital of the financial lease equipment. 5. ** The cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets ** - It is calculated as (the ending amount of construction in progress-the beginning amount of construction in progress)(excluding interest)+(the ending amount of fixed assets-the beginning amount of fixed assets)+(the ending amount of intangible assets-the beginning amount of intangible assets)+(the ending amount of other long-term assets-the beginning amount of other long-term assets). If the ending amount is less than the beginning amount, it will be accounted for in the net cash recovered from the disposal of fixed assets, intangible assets and other long-term assets. 6. ** The cash paid for the investment ** - It is calculated based on the difference between the ending amount and the beginning amount of short-term investment, long-term equity investment and long-term debt investment (excluding investment gains or losses). If the ending amount is less than the beginning amount, it will be accounted for in the cash received from the investment recovery. 7. ** Other cash paid in relation to investment activities ** - For example, if the investment did not arrive on time, a fine would be imposed. ##III. The cash flow generated from fund-raising activities 1. ** The cash received from absorbing investments ** - It is calculated as (the ending amount of paid-in capital or share capital-the beginning amount of paid-in capital or share capital)+(the ending amount of bonds payable-the beginning amount of bonds payable). 2. ** Borrowed cash ** - It is equal to (ending amount of short-term loans-beginning amount of short-term loans)+(ending amount of long-term loans-beginning amount of long-term loans). 3. ** Other cash received related to fund-raising activities ** - For example, the cash income of the investor's failure to pay the shares on time. 4. ** The cash paid to repay the debt ** - It is (beginning amount of short-term loans-end amount of short-term loans)+(beginning amount of long-term loans-end amount of long-term loans)(excluding interest)+(beginning amount of bonds payable-end amount of bonds payable-end amount)(excluding interest). 5. ** cash paid for dividends, profits or interest payments ** - Including the amount of dividends to be paid, interest expenses, interest on long-term loans, interest on construction projects in progress, interest on bonds to be paid, minus the credit balance of "interest withdrawn" and interest expenses on bills discounted. 6. ** Other cash paid in connection with fund-raising activities ** - For example, the cash paid for the fund-raising expenses, the cash paid for the financial lease, and the cash paid for reducing the registered capital. <a href="/?from=ask_words" style="color:red" target="_blank">Read more exciting novels for free</a>
Which financial statement is prepared according to the cash basis principle?
The cash flow statement is prepared according to the cash basis. Under the cash basis, the recognition of income and expenses depends on whether they have been realized or incurred. That is, the current income and expenses are determined according to whether the money has been received or paid. The cash flow statement reflects the organization's capital utilization and circulation under the cash basis. <a href="/?from=ask_words" style="color:red" target="_blank">Read more exciting novels for free</a>
The Principle of Preparing Blossoms
There were many ways to prepare the bleachers. One of the common methods was to add Cl2 into water to form Cl2 and Cl3. This kind of bleachers used its strong oxidization ability to vaporize the "chromophore" inside the organic color substance, causing it to lose its original color. The other method was to prepare the bleachers by vaporizing salt water, which would produce both NaClO and NaOx. The content of the bleachers could vary depending on the preparation method, and was generally between 4-15%. In addition, the active ingredients in the bleachers were mainly the two main ingredients, namely, the hypochlorites and the chlorites. In general, the principle of the preparation of the bleachers was to use the strong oxidization of the bleachers to achieve the bleachability of the colored substances.
The Principle and Method of Wizard Spellcasting
In many novels, anime, games, and other works, the principle of sorcery was mostly based on " elements." When sorcerers cast spells, they communicated with the spirits or elements between heaven and earth, and borrowed their power by requesting or commanding them. This request or command was called " chanting." In some works, sorcerers who were good at communicating with elements were regarded as brilliant, while sorcerers who only understood orders and did not pay attention to harmony and friendliness were regarded as inferior. From the perspective of spellcasters, wizards were a special type of spellcaster. They used knowledge as their source of power. The more knowledge they had, the stronger they would be. If they did not have enough knowledge, they might not be able to advance. Moreover, there was no upper limit. They could even be stronger than gods, and gods could also become their research targets. From the logic of witchcraft itself, it was based on two kinds of principles: one was the law of similarity, which derived from the "coincidental witchcraft" or "imitation witchcraft". Sorcerers believed that they could realize their wishes through imitation; The other was the Law of Contact or the Law of Confusion, which stated that objects would interact with each other from a distance even if they were to break off contact. The spells based on this were called Contact Sorcery, but Contact Sorcery could only be carried out by combining the principles of following the trend or simulation. The two were usually used together, but these principles were a distortion of the laws of nature. In terms of casting methods, different settings were different. For example, in some settings, casting spells might require incantations, gestures, staffs, etc., and it might take time, mental strength, magic power, and casting materials. After a certain spell was used once, it might not be able to be used again for a short period of time. While waiting for the TV series, you can also click on the link below to read the classic original work of "Dafeng Nightwatchman"!
The definition and principle of the possession method
Possession had different meanings and principles in different cultures and religions. From a religious point of view, in Tibetan Buddhism, the possession method was a part of the Shifting Yoga. It was considered a cultivation method that forcefully entered another person's body, and its theoretical basis was that the spiritual consciousness would not be destroyed. The human body was regarded as a temporary house. After cultivating to a certain realm, people could use it to decide their own life and death. In Taoist theory, there was a similar theory, which was a theory of borrowing another person's body to return to the sun. It believed that the soul was immortal or that the consciousness was not broken after death. The body was only a mental shell, and there was a situation where the soul ran into another person's body to continue living. In some legends, there were two types of possession techniques: taking away life and taking away death. Taking away life was to replace the soul of the person being possessed with one's own soul, but retain the soul. Taking away death was divided into two types: taking away people and taking away beasts. After the person died, his soul would dissipate. After taking over, he would have to cultivate a soul. On the other hand, a beast had a soul but no soul. After taking over, he could immediately control it without cultivating a soul. However, these were mostly concepts from legends and had not been proven by science. While waiting for the TV series, you can also click on the link below to read the classic original work of " A Record of a Mortal's Journey to Immortality "!
Method for preparing edible coloring
There were many ways to make food coloring. Different ingredients and techniques could be used to make food coloring. For example, vegetables such as spinach, carrots, and pumpkin could be used to make natural food coloring. The production process usually included washing, cooking, drying, and grinding. In addition, you can also use food colors such as red, yellow, blue, and green to color. Different colors can be obtained through different proportions. However, the specific production method required further research and understanding.
Cash Flow Horror Story: How to Avoid Common Cash Flow Problems?
To deal with unexpected expenses, it's important to have an emergency cash reserve. Set aside a certain percentage of profits each month into a reserve fund. Also, having proper insurance can help. For example, if a business has equipment insurance, when something breaks down, the insurance can cover part or all of the replacement cost, reducing the impact on cash flow.
Principles of preparing balance sheet and profit statement
The principle of preparing the balance sheet was based on the accounting identity "assets = debts + owner's equity". This was an identical relationship that represented the source of funds (debt and owner's equity) and the use of funds (assets) at a particular point in time. The principle of preparing the income statement is mainly based on the balance formula of "revenue-expense = profit". The body of the table lists the various items and calculation process that form the operating results. For example, the items reported separately for operating profit include operating income, operating costs, taxes and surcharges, sales expenses, management expenses, research and development expenses, financial expenses, credit loss, asset loss, other income, investment income, etc. The total profit item is operating profit plus non-operating income minus non-operating expenses. The net profit item is the total profit minus the income tax expense, including the net profit from continuing operations and the net profit from termination of operations. Each item in the income statement needs to be filled in the two columns of "amount of the current period" and "amount of the previous period". The figures in the column of "amount of the previous period" should be filled in according to the figures listed in the column of "amount of the current period" in the income statement of the previous period. The method of filling in the column of "amount of the current period" should generally be filled in according to the amount of profit and loss category and owner's equity category. <a href="/?from=ask_words" style="color:red" target="_blank">Read more exciting novels for free</a>