PROJECT ON CASH FLOW STATEMENT
Name: __________________________
Class: XII
Subject: Accountancy
Board: ISC (Indian School Certificate)
Academic Year: 2024–2025
Submitted to: __________________________
Submitted by: __________________________
CERTIFICATE
This is to certify that __________________________, a student of Class XII, has successfully
completed the Accountancy project titled 'Preparation of a Cash Flow Statement' for the
academic session 2024–25 under the guidance of __________________________.
Date: ___________
Signature of Teacher: ___________________
Seal of School: _________________________
ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude to my Accountancy teacher
__________________________ for her/his constant guidance, encouragement, and support
throughout the completion of this project. I would also like to thank my school and
classmates for their help and cooperation.
Student’s Name: ___________________________
INDEX
1. 1. Introduction
2. 2. Objective of the Project
3. 3. Meaning of Cash Flow Statement
4. 4. Types of Activities in Cash Flow
5. 5. Format of Cash Flow Statement
6. 6. Imaginary Balance Sheets
7. 7. Additional Information
8. 8. Preparation of Cash Flow Statement
9. 9. Graphical Presentation
10. 10. Conclusion
INTRODUCTION
A Cash Flow Statement is a financial statement that shows the inflow and outflow of cash
and cash equivalents during a particular period. It helps in understanding how cash is
generated and used by a business through various activities such as operations, investing,
and financing.
OBJECTIVE OF THE PROJECT
1. To prepare a Cash Flow Statement using Balance Sheets of two consecutive years.
2. To identify and classify cash flows under Operating, Investing, and Financing activities.
3. To analyze how business operations affect cash position.
4. To present results both numerically and graphically.
MEANING OF CASH FLOW STATEMENT
A Cash Flow Statement provides information about the changes in cash and cash
equivalents of a company during an accounting period. It helps stakeholders know how cash
is generated and used through operating, investing, and financing activities.
TYPES OF CASH FLOW ACTIVITIES
Operating Activities – Main business activities generating revenue.
Investing Activities – Related to purchase or sale of long-term assets.
Financing Activities – Related to capital and borrowings.
FORMAT OF CASH FLOW STATEMENT
The Cash Flow Statement includes sections: Operating Activities, Investing Activities, and
Financing Activities, followed by the net increase or decrease in cash balance.
IMAGINARY BALANCE SHEETS
Balance Sheets of XYZ Ltd. (in ₹):
Liabilities: 2024: 4,30,000 | 2025: 4,75,000
Assets: 2024: 4,30,000 | 2025: 4,75,000
ADDITIONAL INFORMATION
1. Depreciation ₹20,000
2. Dividend paid ₹10,000
3. Sale of Investment ₹12,000
4. Income tax paid ₹5,000
5. Machinery purchased ₹40,000
PREPARATION OF CASH FLOW STATEMENT
Operating Activities: ₹3,000
Investing Activities: –₹28,000
Financing Activities: ₹20,000
Net Increase: ₹5,000
Closing Balance: ₹40,000
GRAPHICAL PRESENTATION
Graphically, results can be shown using bar diagrams and pie charts representing the cash
flows from operating, investing, and financing activities.
CONCLUSION
From the above statement, it can be concluded that the company generated positive cash
from operations, invested heavily in fixed assets, and financed its deficit through share
capital issue, showing a stable financial position.
