Jakarta, IDN Times – linguistically, cash flow means cash flow. However, in finance, this term is a financial statement that contains the effects of cash from operating activities, investment transactions, financing or financing transactions to the net increase or decrease in cash in a company in a period.
Based on Financial Accounting Standards (PSAK) No. 2 (2002:5), what is meant by cash flow or cash flow is the inflow and outflow of cash or cash equivalents. Then, how to calculate cash flow for smooth cash flow? Here’s how!
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1. 3 main sections cash flow
Before counting cash flowyou need to know and include these three parts in compiling it.
First, cash-in flow. This section will identify the sources of funds received and entered into the cash of your business or business, the amount of funds in that period, the results in the form of cash sales, credit sales that will become receivables, proceeds from the sale of fixed assets and other receipts. This section is continuous and not continuous.
Second, cash-out flow. This section describes all the cash that is anticipated to be issued. Generally, the outgoing funds are related to the operational needs of the business.
For example the purchase of raw materials, payment of third party debt, employee wages, company administration, and also other expenses. This section is also continuous.
Third, financing. This is the part that shows the magnitude cash flow or net cash flow and the actual need for funds in the event of a deficit.
2. How to calculate cash flow The first
How to calculate cash flow The first is to understand in advance the formula for calculating cash flow correct. There are two ways to calculate this, the first formula:
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Net cash inflow = Earning after tax (EAT) + depreciation
In this case, EAT is net profit after tax earned in a certain period or period. Net profit after tax is obtained from the calculation of total income or income minus total costs and taxes.
Don’t forget, how to count cash flow The first applies to businesses or businesses financed with own capital without loans or debts from other parties. In this case, depreciation is also calculated because depreciation does not include cash outlays and depreciation can arise when the fixed assets are purchased.
3. How to calculate cash flow The second
The second step that can be done to compile cash flow is to use this formula:
Net cash inflow = Earning after tax (EAT) + depreciation + interest (1-tax)
This method applies to businesses or businesses that you have financed with capital from loans from other parties.
4. How to calculate cash flow the latter
After all the formulas above are applied, you can continue by doing the four steps in the compilation cash flow. First, determine the minimum amount of money.
Next, prepare estimates of receipts and expenditures, prepare estimates of the need for funds from debt needed to cover the cash deficit, and repay loans from other parties or third parties.
Then, then rearrange the overall receipts and expenses after the financial transactions and the final cash budget.
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