What does the cash flow statement mean?

Question 1: What does cash flow mean? Cash flow is an important concept in modern financial management, which refers to the cash inflow, cash outflow and its total amount generated by certain economic activities (including business activities, investment activities, fund-raising activities and non-recurring projects) in a certain accounting period, that is, the inflow and outflow of cash and cash equivalents in a certain period.

Cash flow management is an important function of modern enterprise financial activities, and establishing a perfect cash flow management system is an important guarantee to ensure the survival and development of enterprises and improve market competitiveness.

Cash flow is an important concept in modern financial management, which refers to the cash inflow, cash outflow and its total amount generated by certain economic activities (including business activities, investment activities, fund-raising activities and non-recurring projects) in a certain accounting period, that is, the inflow and outflow of cash and cash equivalents in a certain period. For example: selling goods, providing services, selling fixed assets, recovering investment, borrowing funds, etc. , forming the cash inflow of enterprises; Purchase of goods, acceptance of labor services, purchase and construction of fixed assets, cash investment, repayment of debts, etc. , forming the cash outflow of the enterprise. Cash flow is a very important indicator to measure whether an enterprise is in good operating condition, whether it has enough cash to repay debts and liquidity of assets.

The cash flow in the engineering economy refers to the actual cash inflow, outflow and the difference between inflow and outflow (also known as net cash flow) of the proposed project at various points in the whole project calculation period. General cash flow takes interest period (year, quarter, month, etc.). ) is the time unit and is expressed by cash flow statement or cash flow statement.

Question 2: What does the cash flow statement mean? It is one of the four financial statements, reflecting cash flow, which is divided into main table and attached table. It's complicated to compile

Question 3: What's the difference between cash flow statement and cash flow statement 1? Calculation basis of cash flow statement indicators

In accounting, there are two measurement bases, one is called accrual basis and the other is called cash basis.

The measurement basis adopted in the income statement is accrual basis. Its characteristic is that all enterprise income should be reflected in the income statement, regardless of whether the enterprise has recovered the money; All expenses belonging to this period should be regarded as the expenses of the enterprise, regardless of whether the enterprise has spent the money or not.

The measurement basis of cash flow statement is cash basis. It is characterized by paying special attention to cash. As long as the money enters the enterprise, it is cash inflow, as long as the money goes out, it is cash outflow, no matter which period the money belongs to.

situation

In August, 2000, the sales income of Company A was RMB 6,543.8+0,000 yuan in cash, of which RMB 500,000 yuan was the income from selling products in the current period, which belonged to the current inflow, and RMB 500,000 yuan was the debt paid by Company B, which was RMB 654.38+0.999, which should also be counted as the current cash inflow. Company C purchased the processing equipment of Company A, and Company A received 500,000 yuan from Company C in advance, and this 500,000 yuan in advance was also used as the current inflow. In August, Company A paid the tax of 654.38+million yuan in July, and the tax paid in August for July is also counted as the outflow of this period. In August, Company A repaid 300,000 yuan for purchasing raw materials, which was the outflow of this period. Company A found that Company D was short of raw materials, so it paid Company D 600,000 yuan in advance, booked the materials in short supply in the market, and the prepaid money also flowed out as the current period. From the perspective of cash basis, as long as the money comes from the current period, it is considered as the cash inflow of the current period, regardless of whether it is the receivables of the current period. As long as the money is paid, even if it is cash outflow, there is no need to consider whether the money is payable in this period.

So some people say that an enterprise has two income statements. One kind of income statement is the accrual income statement, which is calculated according to the accrual basis. Another kind of income statement is the cash flow statement, which is based on the cash basis.

In practice, the cash basis is as follows: among the cash flows generated by business activities, the cash received from selling goods and providing services, that is, the money recovered from selling things by enterprises, should belong to the current inflow index. The previous arrears recovered in this period and the money received from others in advance also belong to this indicator. Payment of purchase money in the current period, repayment of purchase money in the previous period and prepayment of purchase money in the next period all belong to the outflow indicators of this period.

Second, the main statement project explanation

Operating activities

Business activities include three indicators, namely cash inflow, cash outflow and net amount. Cash inflow and cash outflow include many items.

1. Cash inflow

Cash inflow includes many items. Adding these items together is the subtotal of cash inflow from operating activities. These indicators mainly include the following:

(1) Cash received from selling goods and providing services

Simply put, it is the cash recovered by enterprises selling things.

(2) Refund of taxes and fees received

For example, in China, income tax is generally paid in advance on a quarterly basis and settled at the end of the year. Once the enterprise income tax is overpaid, it will be returned within the year. For enterprises, this money is also a cash inflow.

(3) Other cash received related to business activities.

In the cash flow statement, important items must have names, and unimportant items are generally summarized as other cash received related to business activities.

2. Cash outflow

Cash outflows include many items. Together, these items are the subtotal of cash outflow from operating activities. These indicators mainly include the following:

(1) Cash paid for goods and services.

This indicator refers to the amount spent by the enterprise in the procurement process, including the purchase payment in the current period, the debt repayment for the last purchase in the current period, and the advance payment for the next purchase in the current period.

(2) Cash paid to employees

The cash paid by enterprises to employees is mainly wages and bonuses, as well as wages, bonuses, labor insurance, welfare and other expenses. No matter which period, as long as it is the money spent in this period, it will be regarded as the outflow index of this period.

(3) Various taxes and fees paid

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Question 4: What does "cash" mean in the cash flow statement? Cash in the cash flow statement refers to cash on hand, deposits available for payment at any time and cash equivalents.

Specifically, it includes the following four aspects:

(1) Cash on hand

Cash on hand refers to the cash held by an enterprise that can be used for payment at any time, that is, it is consistent with the contents contained in the "cash" account in accounting.

(2) Bank deposits

Bank deposit refers to the deposit that an enterprise can use for payment at any time in banks or other financial institutions, that is, it is basically consistent with the contents contained in the subject of "bank deposit" in accounting. The difference between the two is that deposits that cannot be used for payment at any time in the funds deposited in banks or other financial institutions should not be used as cash in the cash flow statement, such as time deposits that cannot be withdrawn at any time. However, time deposits that banks or other financial institutions can withdraw in advance are included in the cash concept of the cash flow statement.

(3) Other monetary funds

Other monetary funds refer to the funds that the enterprise has deposited in the bank for a specific purpose or has not received on the way, such as foreign deposits, bank draft deposits, cashier's checks deposits, letter of credit guarantee funds, and monetary funds in transit.

(4) Cash equivalents

Cash equivalent refers to the investment held by an enterprise with short term, strong liquidity, easy conversion into known amount of cash and little risk of value change. The main feature of cash equivalent is its strong liquidity, which can be converted into cash investment at any time. Generally, it refers to the investment that expires in three months or less, or can be converted into cash. For example, when an enterprise purchases a 3-year national debt issued by 1998 12 1, the maturity date at the time of purchase is 1 month, and this short-term investment should be regarded as a cash equivalent.

Reference: zhidao.baidu/...VA4Va_

Question 5: What does the cash in the cash flow statement mainly refer to? Cash in the cash flow statement refers to cash on hand, deposits available for payment at any time and cash equivalents.

Specifically, it includes the following four aspects:

(1) Cash on hand

Cash on hand refers to the cash held by an enterprise that can be used for payment at any time, that is, it is consistent with the contents contained in the "cash" account in accounting.

(2) Bank deposits

Bank deposit refers to the deposit that an enterprise can use for payment at any time in banks or other financial institutions, that is, it is basically consistent with the contents contained in the subject of "bank deposit" in accounting. The difference between the two is that deposits that cannot be used for payment at any time in the funds deposited in banks or other financial institutions should not be used as cash in the cash flow statement, such as time deposits that cannot be withdrawn at any time. However, time deposits that banks or other financial institutions can withdraw in advance are included in the cash concept of the cash flow statement.

(3) Other monetary funds

Other monetary funds refer to the funds that the enterprise has deposited in the bank for a specific purpose or has not received on the way, such as foreign deposits, bank draft deposits, cashier's checks deposits, letter of credit guarantee funds, and monetary funds in transit.

(4) Cash equivalents

Cash equivalent refers to the investment held by an enterprise with short term, strong liquidity, easy conversion into known amount of cash and little risk of value change. The main feature of cash equivalent is its strong liquidity, which can be converted into cash investment at any time. Usually refers to the purchase of an investment that expires in three months or less or can be converted into cash.

Question 6: What is the meaning of sales cash flow? Cash flow is mainly revealed by cash flow statement, which was disclosed as one of the basic financial statements of listed companies from 1998. Compared with balance sheet and income statement, cash flow statement is not familiar to most investors. The cash flow statement is simply a statement that reflects the cash inflow, outflow and net inflow of an enterprise in a certain period (such as the first half of the year).

Question 7: What does the cash flow of stocks mean? Cash flow per share refers to the ability of enterprises to repay loans, maintain production, pay dividends and invest abroad with cash generated from their own business activities without using external financing. It is an important index to evaluate the "gold content" of earnings per share.

Cash flow per share is the ratio of the net cash flow brought by the company's operating activities minus the dividend of preferred shares to the number of issued common shares. The calculation formula of cash flow per share is as follows: cash flow per share = (net cash flow from business-preferred stock dividend)/number of common shares in circulation.

For example, the net cash flow brought by a company's year-end operation is 65,438+08,876,295 yuan, the preferred stock dividend is zero, and the number of ordinary shares is 86 million shares, then:

Cash flow per share = 65,438+08,876,295 yuan/86 million shares = 0.22 yuan/share.

Generally speaking, in the short term, cash flow per share can better reflect the ability to engage in capital expenditure and pay dividends than earnings per share. Cash flow per share is generally higher than earnings per share, because the net cash flow brought by the company's normal operation will also include some expense adjustment items that are deducted from profits but do not affect cash outflow, such as depreciation expenses. But cash flow per share may also be lower than earnings per share.

Question 8: How to understand the cash flow statement? Cash flow statement is a report that reflects the dynamic situation of cash inflow and cash outflow in a certain period of time. Its composition is consistent with the balance sheet and income statement. Through the cash flow statement, we can generally reflect the influence of business activities, investment activities and financing activities on the cash inflow and outflow of enterprises, and provide a better basis for evaluating the realized profits, financial status and financial management of enterprises than the traditional income statement.

Function of cash flow statement

Disclosure of the company's cash. It is helpful for report users to obtain the real cash flow and balance of enterprises, and makes up for the static cash flow of enterprises that cannot be reflected in the balance sheet and income statement.

Disclosure of the real profitability of enterprises. Although the income statement can reflect the profitability of an enterprise, for various reasons, the data reflected in the income statement may be elastic or even imaginary, while the cash flow statement can better reflect the profitability of an enterprise.

Disclosure of enterprise's solvency. There are many financial indicators that reflect the solvency of enterprises, such as current ratio and quick ratio, but most of these indicators are relative. In practice, it is necessary to look at the solvency of an enterprise from a more direct perspective, that is, to see how much debt the enterprise has repaid in an accounting period, which is more direct in the cash flow statement.

Reveals the payment ability of enterprises. The payment activities of an enterprise in an accounting period are varied, such as purchasing goods, paying wages, paying taxes, etc. The scale and structure of these payment items can reflect the operating conditions of enterprises to a certain extent, and the cash flow statement comprehensively reflects these important accounting information.

The cash flow statement based on cash and cash equivalents, with cash as the same caliber, is conducive to the comparability of enterprises in different industries.

Cash flow statement analysis

Absolute number comparative analysis method

Whether the net cash flow generated from operating activities, investment activities and financing activities is normal or not cannot be decided.

When the enterprise was founded, the product was still in the market development stage, which required a lot of investment and financing, so the net cash flow of production and operation activities and investment activities was generally negative, while financing activities were positive. In the period of rapid growth, product sales grew rapidly and operating cash flow was positive. At the same time, in order to expand market share and increase investment, the investment cash flow is still negative, but the operating cash flow is probably not enough to meet the cash needed for investment, so the cash flow of financing activities may continue to be positive; In the product maturity, the product sales are stable and enter the investment payback period, so the operating cash flow and investment cash flow are positive, while cash flow from financing is negative, because cash is used to repay debts; After entering the recession, the market shrinks, sales decline, cash flow from operating activities is negative, and enterprises recover investment and repay debts on a large scale, so cash flow from investment activities is positive and cash flow from financing activities is negative.

Net increase in cash. If the net increase in cash of enterprises is mainly caused by business activities, it can reflect that enterprises have strong cash withdrawal ability, low risk of bad debts and generally good marketing ability. If the net cash of an enterprise is mainly caused by investment activities, it is caused by the disposal of fixed assets, intangible assets and other long-term assets, which reflects the decline of the production and operation ability of the enterprise, so as to dispose of non-current assets to alleviate the contradiction of funds. But it may also be that enterprises adjust their asset structure in order to get out of the bad situation, and they should also make in-depth analysis in combination with the other two tables. If it is mainly caused by fund-raising activities, it means that the enterprise will pay more interest or dividends, and the net increase of its future cash flow must be greater to meet the repayment needs, otherwise, the enterprise will bear greater financial risks.

Look at inventory in combination with balance sheet. Compare the cash received from the sale of goods and services with the cash paid for the purchase of goods and services, so as to grasp the overall supply and marketing situation of the enterprise. If the latter is obviously greater than the former, it may indicate that the enterprise is in a state of inventory backlog. On the contrary, if the latter is obviously greater than the former, the enterprise may increase its income due to the increase in product prices during the accounting period. If there is no price increase, the enterprise may be eating inventory. At this time, it is necessary to look at the entry and exit of inventory in combination with the balance sheet. If the inventory is normal, it depends on whether a large number of early accounts receivable are recovered in this period.

Through the correspondence between "cash received from investment recovery" and "cash received from investment income" and the original investment of the enterprise, combined with the change rate of the balance of "long-term investment" and "short-term investment" in the balance sheet, this paper analyzes whether the enterprise's foreign investment is profitable.

Relative number-financial ratio analysis method >>

Question 9: What is a cash flow statement? Cash flow statement is a report that reflects the dynamic situation of cash inflow and cash outflow in a certain period of time. Its composition is consistent with the balance sheet and income statement. Through the cash flow statement, we can generally reflect the influence of business activities, investment activities and financing activities on the cash inflow and outflow of enterprises, and provide a better basis for evaluating the realized profits, financial status and financial management of enterprises than the traditional income statement. ... reflects the cash flow of the enterprise ... cash here is not accounting in a narrow sense, but in a broad sense.

Notes to accounting statements are explanations of the basis, basis, principles, methods and main items of accounting statements in order to facilitate users to understand the contents of accounting statements.

Generally speaking, the notes to accounting statements should at least include the following contents:

(1) A statement that does not conform to the accounting assumptions;

(2) important accounting policies and accounting estimates and their changes, reasons for changes and their impact on financial status and operating results;

(3) Explanation of contingencies and future events in the balance sheet;

(4) Description of related party relationships and their transactions;

(5) An explanation of the transfer and sale of important assets;

(6) An explanation of the merger and division of the enterprise;

(seven) major investment and financing activities;

(8) The explanation of important items in accounting statements is helpful to understand and analyze other matters that need to be explained in accounting statements.