Format of the Cash Flow Statement

The Cash Flow Statement of a Company must be prepared according to the requirements of Statement AC 118 of the Public Accountants and Auditors Board.  As we have indicated before there are two methods namely the indirect and direct methods.  In this part, we are going to concentrate on the direct method only as this is the suggested format to use in practice.

Click here to view and download the financial statements for Mamoek LTD that can serve as an example.

The projections that we have discussed here will give you the basic underlying understanding of how projections are calculated. Projections that you do at the workplace may not be as simple as the ones you have compiled in class. Your organisation might have existing spreadsheets or software in place that does a lot of the workings for you. It is important for you to find out what your organisation has in place with regard to doing projections and to learn how to use your organisation’s systems.