Answer to Question #78663 in Accounting for Liam Johnston

Question #78663
explain how balances are transferred into and out of cash flow statements and how the closing cash is calculated.
1
Expert's answer
2018-07-01T04:55:08-0400
When using the straight-line method of the cash flow statement, all major items of cash receipts and expenses are consistently presented, and the difference between them generates net cash flows separately from operational, investment and financial activities.
In the indirect method of drawing up a statement of cash flows, initially indicate the amount of net profit (loss), which is then adjusted to the amount of net change due to the elimination of the impact of non-monetary transactions.
The cash flow statement should take into account the transfer of finite cash to the original cash.

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