UK Cash Flow statement using Indirect Method: Financing Activities


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Hello,
I'm currently working on a problem that requires me to figure out the cash flow statement using the indirect method.
However, I'm not sure what to do with bank overdraft and how to figure out the end cash&cash equivalent value.

592


594


So, here, I calculated as following:
  1. Net Cash flows from Operating Activities: 1152
  2. Net Cash flows from Investing Activities: 8670
  3. Net Cash flows from Financing Activities: 3000
  4. Net Decrease in Cash: 4518
So, here, I didn't take the bank overdraft into financing activity. But, should I? If so, how would it affect the final cash&cash equivalent value (debit or credit)?

Please help the confused guy... Thank you.
 

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Fidget

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You don't include the bank balances *in* the cash flow. Once you've done your cash flow statement you'll have your net movement in cash. Then there's a little reconciliation after that. It's basically:

Opening bank balance + net movement in cash, should equal your closing bank balance. If it doesn't, something's wrong in your statement.
 
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