Where do you start when creating a statement of cash flows

The first step in preparing a cash flow statement is determining the starting balance of cash and cash equivalents at the beginning of the reporting period. This value can be found on the income statement of the same accounting period.

What are the 7 steps to prepare a cash flow statement?

7 Steps to Prepare a Statement of Cash Flow Statement\n\n So, now we are going to learn the procedure for preparing cash flow statement step by step with the indirect method: Start by collecting basic documents and data. Compute the Balance Sheet changes. Add each balance sheet change to the cash flow statement.

What is the proper order for the cash flow statement?

The correct order is investing, operating, financing.

What is the starting point for a direct cash flow statement?

#1 Operating Cash Flow\n\n The cash flow statement begins with Cash Flow from Operating Activities. It starts with net income or loss, followed by additions to or subtractions from that amount to adjust the net income to a total cash flow figure.

What are cash flows at the start?

Initial cash flow is the total money that is available when a project or business is in the planning stages. The figure includes any loans or investments made in the project. It is usually a negative figure since launching a business requires capital investment in the hopes of generating future income.