FABMQ1 Mod4 R.Olegario

Fundamentals of
Accounting, Business and

Management 2
Quarter 1 – Module 4:
Cash Flow Statement (CFS)
Fundamentals of Accounting, Business and Management 2 – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 4: Cash Flow Statement (CFS)
First Edition, 2020
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Fundamentals of
Accounting, Business
and Management 2
Quarter 1 – Module 4:
Cash Flow Statement (CFS)
Introductory Message
For the facilitator:
Welcome to the Fundamentals of Accounting, Business and Management 2 –
Grade 12 Alternative Delivery Mode (ADM) Module on the Cash Flow Statement
(CFS)!
This module was collaboratively designed, developed, and reviewed by
educators both from public and private institutions to assist the teacher or facilitator
in helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace and time. Furthermore, this also
aims to help learners acquire the needed 21st century skills while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of
the module:
Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.
1
For the learner:
Welcome to the Fundamentals of Accounting, Business and Management 2 –

Grade 12 Alternative Delivery Mode (ADM) Module on the Cash Flow Statement
(CFS)!
The hand is one of the most symbolized part of the human body. It is often
used to depict skill, action and purpose. Through our hands we may learn, create
and accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant competencies
and skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an active
learner.
This module has the following parts and corresponding icons:
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.
What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
What’s In This is a brief drill or review to help you link

the current lesson with the previous one.
What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.
What is It This section provides a brief discussion of the

lesson. This aims to help you discover and
understand new concepts and skills.
What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.
2
What I Can Do This section provides an activity which will
help you transfer your new knowledge or skill
into real life situations or concerns.
Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.
Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.
Answer Key This contains answers to all activities in the

module.
At the end of this module you will also find:
References This is a list of all sources used in developing

this module.
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.
We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!
3
What I Need to Know
CASH FLOW STATEMENT (CFS)
This module is about the elements of a cash flow statement. It is a statement

that reflects the cash transactions of a business.
At the end of the lessons, you should be able to:
1. Discuss the components and structures of a Cash Flow Statement (CFS)

(ABM_FABM12-If-10)
2. Prepare a CFS (ABM_FABM12-If-11)
What I Know
You may have heard of the Cash Flow Statement during the FABM 1. Here,
the cash transactions are the once we’re familiar with, however these accounts are
needed to be classified according to the activity and used. Test your instinct on this
task.
Put a check if the following transaction is operating, investing, or financing activity.
Transaction Operating Investing Financing

1. Payment of operating expenses
2. Collection of interest
3. Collection from customers
4. Payment of interest
5. Collection of rent
6. Purchase of furniture
7. Additional investment
8. Proceeds of sale of equipment
9. Payment of bank loan
10. Proceeds of bank loan
11. Proceeds from sale of furniture
12. Collection of dividends
13. Cash withdrawal of the owner
4
Lesson
Components of Cash Flow
1 Statement
The cash flow statement shows the cash receipts (inflow) and disbursement
(outflow) for an accounting period. Somehow, it literally shows transactions of (1)
cash inflows because there is an increase in cash; like the collection of receivables,
cash sales or cash services and receiving proceeds of the loan, to name a few; and
(2) cash outflows because there is a decrease in cash; like buying equipment, paying
employee salaries, payment of the loan.
Cash receipts (cash inflows) increase the amount of cash while cash
disbursement (cash outflows) decreases it. However, these cash transactions have to
be classified according to the activity it is used for. These classifications are
operating, investing and financing activities. With proper cash management, it helps
the business assess or project future actions.
To further illustrate how to recognize the transactions from each activity,

below is the cash ledger of ABM Consultancy Services:
Transactions Amount
Payment of operating expenses P 25,400

Collection of interest 5,000
Collection from customers 35,000
Payment of interest 2,000
Collection of rent 3,500
Purchase of furniture 25,000
Additional investment 20,000
Proceeds of sale of equipment 7,000
Payment of bank loan 20,000
Proceeds of bank loan 40,000
Proceeds from sale of furniture 8,900
Collection of dividends 3,000
Cash withdrawal of the owner 30,000
5
A. OPERATING ACTIVITIES
These are cash transactions, receipts (inflow) or disbursements (outflow), arising

from the conduct of operations of the business.
Cash Inflows Cash Outflows

• Collection from customers for the • suppliers for their service or
sale of goods or services goods acquired
• Received royalties, fees or • employees' salaries
commission • government licenses and taxes
• Interest income, dividends and • interest expense
other income • other operating expenses
B. INVESTING ACTIVITIES

from:
• Sale of property and equipment • Purchase of property and

• Sale of investments in debt or equipment
trading securities • Purchase of investment in debt
• Collection of principal amounts and trading securities
from money loaned to others • Lending money to others
C. FINANCING ACTIVITY

from transactions of the owners and creditors of the business.
• Cash withdrawals of the owner

• Investments by the owners
• Payment of the principal balance
• Proceeds of borrowed money
of borrowed money
6
D. COMPLETING THE CFS
The following transactions are taken from the cash ledger of ABM Consultancy
Services. Classify the transactions as to operating, investing or financing activity.
Transactions Amount Activity +/-

Payment of operating expenses P 25,400 OPERATING -
Collection of interest 5,000 OPERATING +
Collection from customers 35,000 OPERATING +
Payment of interest 2,000 OPERATING -
Collection of rent 3,500 OPERATING +
Purchase of furniture 25,000 INVESTING -
Additional investment 20,000 FINANCING +
Proceeds of sale of equipment 7,000 INVESTING +
Payment of bank loan 20,000 FINANCING -
Proceeds of bank loan 40,000 FINANCING +
Proceeds from sale of furniture 8,900 INVESTING +
Collection of dividends 3,000 OPERATING +
Cash withdrawal of the owner 30,000 FINANCING -
Tips for easier computation: First, classify the transactions as to operating,

investing, or financing. Then, put a plus (+), or a minus (-) sign to identify which
transactions are inflows or outflows.
Now, let’s prepare a cash flow statement. Let’s assume that the business
started from scratch, so there is no beginning cash balance per record.
Notice that after transactions are classified per activity, cash inflows are added while
outflows are deducted.
Steps in preparing Cash Flow Statement:
1. Write the heading at the center of the page. It should consist of the name of
the company, name of the financial statement (cash flow statement), and the
date of the accounting period of the CFS which usually starts with the phrase
“For the month/year ended”.
ABM Consultancy Services

Cash Flow Statement
For the month ended June 30, 2020
Cash Flows from Operating Activities

Collection of interest ₱ 5,000
Payment of interest 7 (2,000)
Payment of operating expenses (25,400)
Net Cash Flow from Operating Activities ₱ 19,100
2. List all operating activities from inflow to outflow. Outflow amounts should be
written with parenthesis to indicate that these amounts are negative to the
account. The difference between inflow and outflow is called Net Cash Flow
Cash Flow Statement
from Operating Activities. From the analysis of the transactions of ABM

Cash Flow Statement
Payment of interest (2,000)
Consultancy, here are the operating activities:
Cash Flows from Investing Activities
3. List Proceeds fromactivities
all investing sale of furniture
from inflow to outflow. ₱ Outflow8,900
amounts should be
Proceeds
written of sale of equipment
with parenthesis 7,000
Collection of dividends to indicate that these amounts are negative to the
3,000
Purchase
account. of furniturebetween inflow and outflow is(25,000)
Theofdifference called Net Cash Flow
Payment interest (2,000)
from Net Cash Flow
Investing from Investing
Activities. Activities
From the transactions of(9,100)
analysis of the(25,400) ABM
Payment of operating expenses
Consultancy,
Net Cash Flowherefrom
are the investing
Operating activities:
Activities ₱ 19,100
Cash Flow from Financing Activities
Additional investment ₱ 20,000
Proceeds from sale of furniture ₱ 8,900
Cash withdrawal of the owner (30,000)
Payment of bank loan (20,000)
Purchase of furniture (25,000)
Net Cash Flow from Financing Activities 10,000
Net Cash Flow from Investing Activities (9,100)
Net Increase (Decrease) in Cash ₱ 20,000
Add: Cash balance, June 1, 2020 0.00
Cash balance,activities
4. ListAdditional
all financing
June 30, 2020 ₱ 20,000
investment from inflow to outflow. ₱ Outflow
20,000amounts should be
Proceeds
written with of bank loan to indicate that these amounts
parenthesis 40,000are negative to the
Cash withdrawal
account. The differenceof the owner inflow and outflow is
between (30,000)
called Net Cash Flow
fromPayment of bank
Financing loan From the analysis of the(20,000)
Activities. transactions of ABM
Net Cash Flow
Consultancy, herefrom
are theFinancing Activities
financing activities: 10,000
Cash balance, June 30, 2020 ₱ 20,000
8

Add: all
5. Sum Cashthebalance, June 1,from
net amounts 2020each activity. The result will show 0.00
the net
Cash balance,
increase JuneABM
(if positive), 30,
or 2020
Consultancy
decrease Services
(if negative) in cash. From the 20,000
₱ analysis of the
Cash Flow Statement
transactions of ABM Consultancy, get the sum of P19,100, (P9,100), and
For theThe
P10,000, respectively. month ended June
Net Increase 30,is2020
in cash P20,000. See figure below.
Cash Flows from Operating Activities ABM Consultancy Services

Collection of interest ₱
Cash Flow Statement 5,000
Collection from customers For the month ended June 30, 2020
35,000
Collection ofCollection
dividendsof interest ₱ 3,000
5,000
Payment of Collection
interest from customers (2,000)
35,000
Payment of Collection
operatingof expenses
rent (25,400)
3,500
Collection
Net Cash Flow from ofOperating
dividends Activities 3,000 ₱ 19,100
Cash Flows fromNetInvesting
Cash Flow Activities
from Operating Activities ₱ 19,100
Cash
Proceeds of Flows
sale offrom Investing Activities
equipment 7,000
Net Cash Flow fromofInvesting
Purchase furniture Activities (25,000) (9,100)
Proceeds ofProceeds
bank loanof bank loan
40,000
40,000
Cash withdrawal of the owner
(30,000)
Payment of Payment
bank loanof bank loan (20,000)
(20,000)
Net Cash
Net Cash Flow fromFlow from Financing
Financing Activities
Activities 10,000
10,000
Add: Cash balance, JuneJune
Cash balance, 1, 2020
30, 2020 ₱ 0.00
20,000
9
6. Add
Cash thefrom
Flow beginning cashActivities
Financing balance to get the cash balance for the end of the
Additional investment ₱
month. There is no beginning cash balance given, so20,000
we can already determine
the ending
Cash cash balance
withdrawal for ABM Consultancy, P20,000.
of the owner (30,000)
Below is the acceptable format in the preparation of CFS.

Cash Flow Statement



The ending cash balance will be the cash balance in the statement financial position.
10
What’s In
Are you up for a challenge? Don’t forget the tips mentioned in the discussion.
This will help ease the classification and computation dilemma.
The following data are taken from the records of Fabulous Nails.
Transactions CF Activity +/-

1. Additional investment of Ms. Fab P 30,000
2. Purchase of nail dryer 23,000
3. Paid loan to Island Bank 10,000
4. Cash received on nail service 40,000
5. Paid rent 2,000
6. Paid utilities 2,000
7. Purchase office supplies 2,000
8. Paid salaries of employees 12,000
9. Cash drawings of Ms. Fab 5,000
10. Paid interest 1,000
11. Collection of from customers 15,000
A. Identify the cash flow activity for each transaction, and (+) if it is inflow or (-)
if outflow.
B. Prepare March 31,2020 CFS for Fabulous Nails. Ms. Fab has a beginning
cash balance April 1, 2019 of P 25,000.
Notes to the Teacher

First, classify the transactions as to operating, investing or
financing. Then, put a plus (+), or a minus (-) sign to identify which
transactions are inflows or outflows. Deduct outflows from inflows.
11
What’s New
The following are the financial statement of ABM Consultancy. The figure may
look familiar because it was taken from the previous module. However, there is an
additional link to these financial statements to show the relationship among them,
that is the cash flow statement.
ABM CONSULTANCY SERVICES

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED JUNE 30, 2020
ABM CONSULTANCY SERVICES
Consultancy Fee ₱ 323,000
Statement of Changes in Equity
Other Income
Rent Income ₱ 10,000
For the Month Ended June 30, 2020
Dividends Income 6,000
Gain On Sale Of Equipment 12,000 Magaling, Capital, 6/1/20 ₱ 150,000
Interest Income 5,000 33,000 Add: Additional Investments ₱ 20,000
Total Income ₱ 356,000
Net Income 209,000 229,000
Expenses Total ₱ 379,000
Salaries 98,000 Less: Withdrawals 326,000
Rent 10,000 Magaling, Capital, 6/30/20 ₱ 53,000
Depreciation 7,000
Supplies 4,000
Insurance 10,000 ABM CONSULTANCY SERVICES
Loss On Sale Of Equipment 3,000 STATEMENT OF FINANCIAL POSITION
Interest Expense 15,000 147,000 As of June 30, 2020
Net Income ₱ 209,000
ASSETS
Cash Flow Statement CURRENT ASSETS
For the month ended June 30, 2020 CASH ₱ 20,000
ACCOUNTS RECEIVABLE 10,000
Cash Flows from Operating Activities MERCHANDISE INVENTORY 150,000
Collection of interest ₱ 5,000 SUPPLIES 5,000
Collection from customers 35,000 PREPAID RENT 15,000
Collection of rent 3,500 PREPAID INSURANCE 5,000
TOTAL CURRENT ASSETS ₱ 205,000
NON-CURRENT ASSETS
PROPERTY, PLANT AND EQUIPMENT
SERVICE VEHICLE ₱ 50,000
LESS: ACCUMULATED DEPRECIATION 4,000 46,000
Cash Flows from Investing Activities STORE EQUIPMENT 35,000
Proceeds from sale of furniture ₱ 8,900 LESS: ACCUMULATED DEPRECIATION 6,000 29,000 75,000
Proceeds of sale of equipment 7,000 TOTAL ASSETS ₱ 280,000
LIABILITIES and OW NER'S EQUITY
CURRENT LIABILITIES
Cash Flow from Financing Activities NOTES PAYABLE ₱ 30,000
Additional investment ₱ 20,000 ACCOUNTS PAYABLE 20,000
Proceeds of bank loan 40,000 SALARIES PAYABLE 10,000
Cash withdrawal of the owner (30,000) UTILITIES PAYABLE 5,000
Payment of bank loan (20,000) INTEREST PAYABLE 7,000
Net Cash Flow from Financing Activities 10,000 UNEARNED REVENUES 5,000
Net Increase (Decrease) in Cash ₱ 20,000 TOTAL CURRENT LIABILITIES ₱ 77,000
Add: Cash balance, beg. June 1, 2020 0.00
Cash balance, end June 30, 2020 ₱ 20,000 NON-CURRENT LIABILITIES 150,000
MORTGAGE PAYABLE 150,000
OW NER'S EQUITY
MAGALING, CAPITAL 6/30/2020 53,000
???
TOTAL LIABILITIES AND OW NERS EQUITY ???
₱ 280,000
12
Accomplishing financial statements is a process. SCI’s net income is needed
to accomplish the owner’s equity statement. Meanwhile, ending capital from the SCE
and ending cash flow of CFS are needed to finally accomplish the correct balance in
SFP.
What is It
Identifying and classifying cash transactions is a critical part of preparing a cash

flow statement. But these few takeaways will help you understand the lesson.
• Familiarize yourself with the transactions involving cash whether it is inflow

or outflow.
• Cash Ledger is the record of all cash transactions. They are recorded
chronologically and from there, you can start classifying cash activities.
• There are three classifications of cash flow activity, namely, operating,

investing, and financing. Each classification has both cash inflows and
outflows in them.
• In making the cash flow statement, cash inflows are recorded first followed by
outflows per cash activity.
• For all preparations of financial statements, always follow acceptable formats.

This includes proper heading writing, proper indention, currency sign (Peso
sign), place values (including decimal place if necessary), and clear/legible
writing.
13
What’s More
ENRICHMENT ACTIVITY 1
The following data are taken from the records of AinSoft Gaming Corp.
Identify the cash flow activity for each transaction, and write (+) if it is inflow, or (-)
if outflow.
+/-
Transactions CF Activity
1. Additional investment of Mr. Minmin
2. Cash paid to suppliers
3. Rent income
4. Proceeds from sale of equipment
5. Cash paid for advertising
6. Cash drawings
7. Payment of loan to DBPI Bank
8. Interest payment on loan
9. Purchase building
10. Payment of accounts payable
11. Dividend received
12. Collection from customers
13. Paid for utilities
14. Proceeds of bank loan
15. Proceeds from sales of trading securities
14
ENRICHMENT ACTIVITY 2
The following data are taken from the records of AinSoft Gaming Corp. AinSoft has
beginning cash balance on July 1, 2019, of P 12,345,678.
Prepare cash flow statement for the year ended June 30, 2020.
Transactions
Additional investment of Mr. Minmin P 31,456,789
Cash paid to suppliers 980,000
Rent income 345,678
Proceeds from sale of equipment 567,890
Cash paid for advertising 123,456
Cash drawings 234,000
Payment of loan to DBPI Bank 345,000
Interest payment on loan 45,678
Purchase building 5,678,900
Payment of accounts payable 90,123
Dividend received 23,456
Collection from customers 2,345,000
Paid for utilities 78,900
Proceeds of bank loan 3,345,000
Proceeds from sales of trading securities 789,123
15
What I Have Learned
Learning is a give-and-take relationship. It’s your turn to discuss something about

the lesson. Give your simple explanations of the concepts below.
1. What are the operating activities?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. What are investing activities?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. What are financing activities?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
What I Can Do
Practice makes perfect! Let’s do more!
The following data are taken from the records of Rapsa Pares and Goto. Rapsa has
beginning cash balance on April 1, 2019, of P 24,567.
16
Transactions
Additional investment of Mr. Rapsa ₱ 23,000
Rent expense 1,500
Purchase of utensils 3,000
Cash drawings 2,500
Payment of loan to Aloha Bank 2,500
Interest payment on loan 700
Interest received on bank savings 1,200
Payment of accounts payable 900
Tax payment 500
Paid for utilities 700
Proceeds of bank loan to XYZ Bank 25,000
Bought investment stocks 10,000
Required:
1. Compute for Net Cash Flow from Operating Activities.
2. Compute for Net Cash Flow from Investing Activities.
3. Compute for Net Cash Flow from Financing Activities.
4. Prepare cash flow statement for the year ended March 31, 2020.
Assessment
A. Classify if the following cash transactions is operating, investing, or

financing activity. Write OP for operating, INV for investing, or FIN for
financing.
Transaction CF Activity
1 Payment of operating expenses
2 Collection of interest
3 Collection from customers
4 Payment of interest
5 Collection of rent
6 Purchase of furniture
17
7 Additional investment
8 Proceeds of sale of equipment
9 Payment of bank loan
10 Proceeds of bank loan
11 Proceeds from sale of furniture
12 Collection of dividends
13 Cash withdrawal of the owner
14 Paid utilities
15 Purchase office supplies
16 Paid salaries of employees
17 Proceeds from sales of trading securities
18 Interest received on bank savings
19 Payment of accounts payable
20 Tax payment
B. The following data are taken from the records of Mr. Dunkin Bakery. Mr. Baker
has beginning cash balance on January 1, 2018, of P 32,346.
Transactions
Paid for utilities 2,387
Payment of loan to Arina Bank 20,000
Rent expense 3,500
Proceeds of bank loan to Shuga Bank 49,000
Bought investment stocks 10,000
Cash drawings 12,000
Tax payment 1,000
Additional investment of Mr. Baker 25,000
Interest payment on loan 1,000
Interest received on bank savings 2,100
Payment of accounts payable 2,000
Purchase of utensils 600
Required:
1. Prepare CFS for the year ended December 31, 2019.
18
Additional Activities
The following data are taken from the records of AbyGala Events. Ms. Abegail has a
beginning cash balance on January 1, 2020, of P56,908.
A. Complete the table below. Identify if the transactions are for operating,
investing, or financing and put (+) if it is cash inflow. or (-) if outflow.
Transactions CF Activity +/-

1. Additional investment of Ms. Abegail P 34,000
2. Purchase of furniture 23,000
3. Paid loan to Isla Bank 19,000
4. Cash received on events service 40,000
5. Paid rent 3,000
6. Proceeds from sale of stocks 32,500
7. Purchase office supplies 2,000
8. Paid salaries of employees 12,000
9. Cash drawings of Ms. Fab 3,000
10. Paid interest 1,000
11. Collection of from customers 55,000
B. Compute for net cash flow from:

1. Operating activity
2. Investing activity
3. Financing activity
4. Ending cash balance (Dec. 31,2019)
19
20
What’s In: What’s More: AINSOFT
GAMING CORP
A.
1. FIN + ENRICHMENT 1:
2. INV –
3. FIN – 1. FIN +
4. OP + 2. OP –
5. OP – 3. OP –
6. OP – 4. INV +
7. OP – 5. OP –
8. OP – 6. FIN -
9. FIN – 7. FIN –
10. OP – 8. OP –
11. OP + 9. INV –
B. 10. OP –
11. OP +
12. OP +
13. OP –
14. FIN +
15. INV +
What I Know:
1. OP
2. OP
3. OP
4. OP
5. OP
6. INV
7. FIN
8. IN
9. FIN
10. FIN
11. INV
12. OP
13. FIN
Answer Key
21
What’s More: AINSOFT GAMING CORP
ENRICHMENT 2
22
What I Can Do: RAPSA PARES&GOTO
1. Net operating cash flow = P 4,900
2. Net investing cash flow = (P 10,000)
3. Net financing cash flow = P 48,000
4.
.
23
Assessment B: MR. DUNKIN BAKERY
Assessment A:
1. OP 11. INV
2. OP 12. OP
3. OP 13. FIN What I Have Learned:
4. OP 14. OP
5. OP 15. OP **Student answers may
6. INV 16. OP vary.
7. FIN 17. INV
8. INV 18. OP
9. FIN 19. OP
10. FIN 10. OP
4. ENDING CASH BALANCE = P 155,408
3. FINANCING = P 12,000
2. INVESTING = P9,500
1. OPERATING = P 77,000
B.
OP + 11.
OP – 10.
FIN – 9.
OP – 8.
OP – 7.
INV + 6.
OP – 5.
OP + 4.
FIN – 3.
INV – 2.
FIN + 1.
A.
Additional Activities:
References
Ballada, Win. 2005. Basic Accounting Made Easy. DomDane Publisher & Made
Easy Books.
Ong, Flocer Lao, and Janelle Gomendoza. 2017. Fundamentals of Accounting,
Business and Management 2 for Senior High School. C & E Publishing, Inc.
24
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Email Address: [email protected]

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Fundamentals of

Accounting, Business and

Published by the Department of Education

Development Team of the Module

Writer : Andrea Marie D. Aldueza

Printed in the Philippines by Department of Education – Schools Division of Bataan

Welcome to the Fundamentals of Accounting, Business and Management 2 –

This module was collaboratively designed, developed, and reviewed by

overcoming their personal, social, and economic constraints in schooling.

consideration their needs and circumstances.

Notes to the Teacher

the learners as they do the tasks included in the module.

Welcome to the Fundamentals of Accounting, Business and Management 2 –

This module has the following parts and corresponding icons:

What I Know This part includes an activity that aims to

What’s In This is a brief drill or review to help you link

What’s New In this portion, the new lesson will be

What is It This section provides a brief discussion of the

What’s More This comprises activities for independent

What I Have Learned This includes questions or blank

Assessment This is a task which aims to evaluate your

Additional Activities In this portion, another activity will be given

Answer Key This contains answers to all activities in the

At the end of this module you will also find:

References This is a list of all sources used in developing

The following are some reminders in using this module:

CASH FLOW STATEMENT (CFS)

This module is about the elements of a cash flow statement. It is a statement

At the end of the lessons, you should be able to:

1. Discuss the components and structures of a Cash Flow Statement (CFS)

2. Prepare a CFS (ABM_FABM12-If-11)

Put a check if the following transaction is operating, investing, or financing activity.

Transaction Operating Investing Financing

To further illustrate how to recognize the transactions from each activity,

Payment of operating expenses P 25,400

These are cash transactions, receipts (inflow) or disbursements (outflow), arising

Cash Inflows Cash Outflows

These are cash transactions, receipts (inflow) or disbursements (outflow), arising

Cash Inflows Cash Outflows

• Sale of property and equipment • Purchase of property and

These are cash transactions, receipts (inflow) or disbursements (outflow), arising

Cash Inflows Cash Outflows

• Cash withdrawals of the owner

Transactions Amount Activity +/-

Tips for easier computation: First, classify the transactions as to operating,

Steps in preparing Cash Flow Statement:

ABM Consultancy Services

Cash Flows from Operating Activities

Cash Flows from Operating Activities

Cash Flow from Financing Activities

Cash Flows from Operating Activities ABM Consultancy Services

Below is the acceptable format in the preparation of CFS.

ABM Consultancy Services

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flow from Financing Activities

Transactions CF Activity +/-

Notes to the Teacher

ABM CONSULTANCY SERVICES