End Of Cash Flow Statements-Accounting

its_phil

hey can can anyone gimme a hand with the end of the cash flow statement.i have no problem until after i get the increase/decrease of cash.after that i am baffled as to what is going on with the change in net debt etc.

help would be appreciated!:D

EuropeanSon

its_phil wrote: »

hey can can anyone gimme a hand with the end of the cash flow statement.i have no problem until after i get the increase/decrease of cash.after that i am baffled as to what is going on with the change in net debt etc.

help would be appreciated!:D

I haven't looked at cashflows in ages, I will tomorrow, but AFAIK you get the difference between cash+bank+securities-debentures(or -bank too if it's a liability) for the two years and show that the difference corresponds to the increase/decrease in cash.

Gaga OhLaLa

To get the change in net debt you take the increase/decreases in cash, then add anything that reduces the debt the company owes such as the debentures repaid or government securities.

If more debentures are issued you take them away from the increase in cash coz that would increase the amount you owe..

It should look something like this

Increase in cash xx
Add debentures repaid xx
Add govt.securities bought xx
___
Change in net debt xx



Then you find the net debt for the start of the year
(debentures - cash balance - bank balance - government securities)

And then at the end of the year.
The difference between the two should equal the net debt.


That was a bit of a complicated explanation but i hope it helps!

EuropeanSon

Gaga OhLaLa wrote: »

To get the change in net debt you take the increase/decreases in cash, then add anything that reduces the debt the company owes such as the debentures repaid or government securities.

If more debentures are issued you take them away from the increase in cash coz that would increase the amount you owe..

It should look something like this

Increase in cash xx
Add debentures repaid xx
Add govt.securities bought xx
___
Change in net debt xx



Then you find the net debt for the start of the year
(debentures - cash balance - bank balance - government securities)

And then at the end of the year.
The difference between the two should equal the net debt.


That was a bit of a complicated explanation but i hope it helps!

Thanks! I was a bit rusty on those it seems.

Gaga OhLaLa

I'm a bit rusty on just about everything else!