Cash Flow Statement:
Net Increase/Decrease in Cash Calculation

Q: How is the figure for net increase/decrease in cash calculated or arrived at?

To calculate the net increase/decrease in cash you simply add up the totals of the three sections:

  1. Cash flow from operating activities

  2. Cash flow from investing activities

  3. Cash flow from financing activities

Sample Cash Flow Statement

In the cash flow statement above we calculate the net increase or decrease in cash flow as follows:

Net cash flow from operating activities + Net cash flow from investing activities + Net cash flow from financing activities
= $24,800 + (-$9,000) + $13,000
= $28,800

Hope that makes sense now!

Note that the cash at the beginning and at the end of the period is just included as part of the end of the report as sort of breakdown of the net increase/decrease in cash flow during the year.

All the best!

Comments for Cash Flow Statement:
Net Increase/Decrease in Cash Calculation

Click here to add your own comments

cash flow statement
by: Anonymous

How do I know if there is net increase or decrease in cash?

Help me please
by: Anonymous

Are we doing addition or subtracting to get the amount im lost here...

Click here to add your own comments

Return to Ask a Question About This Lesson!.

Enjoying this Website?
Help Support it with a Donation


Advertise on

privacy policy

Related pages

accounts for synonymmarkup percentage definitionjournal entry for sales discountoperating expenses equationjournal entry worksheet accountingcreditor meaning in accountingvaluation of wipinterest expense journal entryasset meaning tagalogwages debit or creditwhat is meant by accounts receivableledger reconciliation formatposting journal entries to t accountsledger accounts templateinput vat and output vatpaid office rent journal entrydouble entry bookkeeping examplecalculating markup percentageending inventory calculatorcash sales journalprovisioning in accountingcommon sized income statementlifo and fifo in accountingvariable cost of goods sold formulars manoharcash budget calculation exampleaccruals accounting entrieswhat are the books of accountingstockholders equity balance sheet examplepartnership accounting for dummiesasset write off journal entrybookkeeping questions and answers testfifo cost methodbasics of accounting for interviewpro forma journal entrieswhat are the differences between the lifo and fifo methodsincome and expense statement excelindirect cash flow statement templatecash inflows and outflowsaccounting booksexample of a cashbookexamples of ledger entries for accountingfundamentals of financial accounting answer keyaccounting periodic inventory systementry for bad debtssold merchandise for cash journal entryjournal entry to record depreciationlifo inventory valuationmanufacturing overhead calculationretained earnings normal balancedebits and credits in accountingdebit cash credit accounts receivabledefinition of accrued liabilitieswhats a current assetdefine debentures in accountingwhat does sales ledger meanformat of adjusted cash bookprepare a ledger using t accountswork out vat on calculatorsales tax payable journal entrysupplies expensesbi folio numberrevenue received in advance journal entrybook keeping equationequities defanother name for owners equitylifo vs fifo exampleincrease liabilities debit or creditcost of goods sold periodic inventory systemwhat does excl meanmarkup calculator ukfull form of bbfdebit ledgerinventory spreadsheet examplesrent collected in advance isdefinition of sundry creditorsloan ledgerwhat is lifo inventory methodledger and journal entriesdebtors vs creditors