Cash Flow Statement and Ratio Analysis

Ratio Analysis: Liquidity and Solvency Ratios

  • Accounting ratios define the relationship between selected financial data that can be expressed as percentages, rates, proportions or fractions.
  • The objectives of ratio analysis are to locate weak spots of business, provide information for maki .... Read More

Ratio Analysis: Activity and Profitability Ratios

  • Profitability ratios are also known as ‘Income Ratios’. They analyse the earning capacity of the business.
  • Gross profit ratio shows the relationship between gross profit and net revenue from operations. High .... Read More

Cash Flow Statement (Without Adjustment)

  • Cash Flow statement is a statement prepared as per Accounting Standard 3. It shows the flow of cash and cash equivalents of business during a particular period.
  • Cash comprises of cash in hand and demand deposits with banks whereas cash equivale .... Read More

Cash Flow Statement (With Adjustments)

  • In the accounting treatment of Provision of tax, provision made for tax will be added to net profits before tax.
  • For calculating cash from operations after tax, amount paid for tax will be deducted from it.
  • Proposed Dividend appearing in the previous year’s Bal .... Read More

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