Fabm2: Quarter 1 Week 5 Module 5
Fabm2: Quarter 1 Week 5 Module 5
Department of Education
FABM2
y: . Tuyado
Cash Flow
Statement
Quarter 1 Week 5 Module 5
Learning Competency:
Discuss the Components,
Structure, and Preparation of
Cash Flow Statement of a
Single Proprietorship Business
(ABM_FAB/M12-If-9)
Learning Module for Accountancy, Business and Management
to set aside other task/s that may disturb you while enjoying the lessons. Read the simple instructions below to successfully en
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The Components, Structure and
LESSON Preparation of a Cash Flow Statement
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EXPECTATIONS
You will represent real-life situations using cash flow statement (CFS)
PRETEST
Let us start your journey in learning more on CFS. I am sure you are ready and excited to answer the Pretest. Enjoy answ
A. Operating activities
B. Financing activities
C. Investing activities
Great, you finished answering the questions. You may request your facilitator to check your work.
Directions: Write true if the statement is correct and false if the statement is
incorrect in a yellow paper.
10. The equity in Single proprietorship business is the same with equity
in the Partnership business.
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Learning Module for Accountancy, Business and Management
BRIEF INTRODUCTION
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Learning Module for Accountancy, Business and Management
The structure of cash flows:
Reporting of cash flows may be presented using either the direct method
or indirect method. Below is an example of direct method of cash flows.
COMPANY NAME
Cash Flow Statement
For the year ended December 31, 2019
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Learning Module for Accountancy, Business and Management
ACTIVITIES
Activity 1.
Directions: Below are the accounts taken from the ledger of Maan Bakeshop.
Choose from operating activities, investing activities, or financing activities for
your answer and write it in a yellow paper.
1. Purchase of equipment.
3. Payment of rent.
9. Repayment of loan.
Activity 2.
Directions: Using the choices provided, indicate the presence of each of the
transactions below. Write your answers in a yellow paper.
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Learning Module for Accountancy, Business and Management
E. Cash inflow from financing
F. Cash outflow from financing
TRANSACTIONS:
1. Payment of rent
3. Payment of furniture
5. Payment of Salaries
9. Payment of utilities
Activity 3.
Directions: Solve for the (1) net cash flow from investing activity (2) net cash
flow from operating activities, and (3) net cash flow from financing activities
from the following transactions taken from TMAM (Tito Martinez & Atienza
Marie) transport as of March 31, 2020. Write your answer in a yellow paper.
10. The own7er withdrew cash from the business amounting to Php7,000.00.
REMEMBER
The statement of cash flows indicated how the company obtained and used
its money during the accounting period. The operating activity section indicates the
company’s ability to generate cash from sales to meet its current cash needs and
the investing activity was used to expand the company and financing activity was
used to pay back bank or pay the owners in terms of withdrawals.
POSTTEST
Directions: Prepare the statement of cash flow for Angel’s Photocopy Shoppe.
On June 30, 2020, after six months of operations, the following balances were
obtained from the trial balance. All transactions are in cash. Cash balance for
June 1, 2020 is Php25,000.00.
Angel’s Capital Php220,000.00 Service Rendered Php75,000.00
Photocopy Repairs Expenses Php2,800.00
Equipment Php45,000.00 Furniture Php4,000.00
Supplies Php25,000.00 Utilities Expense Php7,500.00
Angel’s Drawing Php8,000.00 Loan Payable Php8,000.00
Taxes Expense Php2,000.00 Rent Expense Php35,000.00
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Learning Module for Accountancy, Business and Management
REFLECTIVE LEARNING
ial distancing. Mass gatherings are not allowed. Education all over the Philippines are online or blended learning. There are advantages and disadvantag
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Advantages Disadvantages
(increases cash flows) (decreases cash flows)
https://theskillcollective.com/blog/coronavirus-new-normal
E-SITES
To be able to practice the skills you have learned in this module about
cash flows, you can visit the following sites:
www.accountingcoach.com
https://www.investopedia.com/investing/what-is-a-cash-flow-statement/
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REFERENCES
Valencia, E. G., & Roxas, G. F. (2010). Basic Accounting (3rd ed.). Mandaluyong
City, Philippines: Valencia Educational Supply.
Acknowledgment
Validators &
Reviewers: Remylinda T. Soriano, EPS
Angelita Z. Modesto, PSDS
George B. Borromeo, PSDS
LayoutArtist &
Illustrator: Ma. Cristina A. Labay, MM
agement Team:
PRETEST
1. B. Financing 8. A. Operating
2. A. Operating 9. A. Operating
3. A. Operating 10. A. Operating
4. A. Operating 11. C. Investing
5. A. Operating 12. A. Operating
6. A. Operating 13. C. Investing
7. B. Financing 14. C. Investing
1. True 6. False
2. False 7. False
3. True 8. True
4. True 9. True
5. True 10. False
ACTIVITIES:
Activity 1
1. Investing 6. Operating
2. Financing 7. Operating
3. Operating 8. Operating
4. Financing 9. Financing
5. Financing 10. Investing
Activity 2:
1. B 6. C
2. E 7. F
3. D 8. E
4. A 9. B
5. B 10. A
Activity 3
1. B
2. A
3. A
4. B
5. C
Learning Module for Accountancy, Business and Management
POSTTEST
COMPANY NAME
Cash Flow Statement
For the month ended June 30, 2019
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Learning Module for Accountancy, Business and Management
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