TRAVERSE Global v11.1

Cash Flow Statement

Use the Cash Flow Statement function to gain information about sources and uses of cash and cash equivalents in a business. The Financial Accounting Standards Board (FASB) has determined that a Cash Flow Statement should be part of a complete set of financial statements. The Cash Flow Statement is generated according to the Indirect Method as described in FASB Statement 95.

Use the Management Reports Setup menu, the Master Lists menu, and the Management Reports menu to set up, maintain, and produce cash flow statements:

  • Use Cash Flow Contents function on the Management Reports Setup menu to set up and maintain cash flow statement contents.
  • Use the Cash Flow Contents Lists function from the Master Lists menu to produce a lists of cash flow contents.
  • Use the Cash Flow Statement function from the Management Reports menu to provide information about sources and uses of cash and cash equivalents in a business.

  1. Use the Data Filter to select the range of filtering options or leave the filter blank to include all available data.
    Note: The segments are labeled with the names you gave them using the Account Mask function.
  2. Select a content ID for the statement from the Cash Flow Content ID field.
  3. Select a range of fiscal periods to include in the statement from the Fiscal Periods section.
  4. Select a range of fiscal years to include in the statement from the Fiscal Years to Compare section.
  5. Select the Detail check box, if applicable, to include detailed information for each account segment. Clearing the check box summarizes the information for all segments of an account into the main account segment.
  6. Select the companies to include in the statement from the Companies section. If you select more than one company, make sure that the accounts are the same in all the companies you select.
  7. Enter the headings you want to print on the statement in the Line fields of the Headings section.
  8. Click a command button to    
    9. Click To
    Print Process the Cash Flow Statement.
    Output Output the statement as a PDF.
    Send Save the statement as a PDF and attach it to an email using your default mail program.
    Preview View a preview of the Cash Flow Statement.
    Reset Set all fields to their default values.
ClosedSample Cash Flow Statement

ClosedLayouts and Calculations

The layout of each section and the calculations on the Cash Flow Statement are defined by the system and cannot be changed. The content of what goes into each section can be edited, but how each section is calculated cannot be changed. Refer to the sample Cash Flow Statement.

ClosedOperating Activities section

The Operating Activities section contains two parts:

  • Net income

    The calculation of net income is based on the fiscal period range specified on the Cash Flow Statement screen when you print. The screen adds the period range activity amounts for accounts in the account type range from 500 to 890. This range of account types includes the account classes: operating revenues, cost of sales, operating expenses, non-operating income, and non-operating deductions. Since the income accounts in this range have credit (negative) balances and the expense accounts have debit (positive) balances, the result is the net income when they are added together.

  • Adjustments to reconcile net cash to Net income

    Amounts that appear in the Adjustments to Reconcile Net Cash to Net Income section are calculated by lines with class “A”. The amounts calculated by each line are displayed separately.

    If the activity amount of the accounts in the account type range is a debit, the amount appears as a negative number and is subtracted from net income. If the activity amount for the account type range is a credit, the amount appears as a positive number and is added to net income.

    The activity amounts for accounts in the account type ranges specified on lines with class “A” are totaled and appear in the report as total adjustments.

    Net income and total adjustments are added together and displayed in the Cash Flow Statement as “Net Cash Provided By/Used In Operating Activities”.

On the total lines of each section of the Cash Flow Statement, if the section’s total amount is positive, Provided By is used in the total description line. If the total amount is negative, Used In is printed instead.

ClosedInvesting Activities section

Amounts that appear in the Investing Activities section are calculated using accounts within the range of account types on lines with class “I”. The activity amounts for the range of fiscal periods specified at print time for each line with class “I” are printed. These amounts are added together and printed in the Cash Flow Statement as “Net Cash Provided By/Used In Investing Activities”.

ClosedFinancing Activities section

The Financing Activities section contains amounts calculated by the lines with class “F”. The activity amounts for the fiscal periods specified at print time are printed for each line with class “F”. These amounts are added together and printed in the cash Flow Statement as Net Cash Provided By/Use In Financing Activities.

The amount that appears as “Net Increase/Decrease In the Cash and Cash Equivalents” is calculated by adding the following amounts:

  • Net cash provided by/used in operations.
  • Net cash provided by/used in investing activities.
  • Net cash provided by/used in financing activities.

For the fiscal period range specified at print time, the amount printed as “Cash and Cash Equivalent at Beginning of Period” is calculated by adding together the beginning balance of the accounts in the account type range on the lines with class “C”.

The amount printed for “Cash and Cash Equivalent at the Ending of Period” is calculated by adding the following amounts:

  • Net decrease/increase in the cash and cash equivalents.
  • Cash and cash equivalents at beginning of period.