Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsHere is an example of Adam’s Statement of Cash Flows, showing the relationship between the Income Statementand the Balance Sheet.Adam’s Computer BagIncome StatementAs At End of Year OneAdam’s Computer BagStatement of Cash FlowsFor the Year OneAdam’s Computer BagBalance SheetFor the Year Ending Year OneCash flows from operating activitiesIncomeRM 52,000RM 52,000SalesRM 52,000RM 5,500RM 8,100RM15,000Non-Current AssetsComputerStore FirnishingOffice Equipment–RM 15,600–RM 18,000–RM 34,320RM 4,120Receipts from incomePayments of expensesFunding to DebtorsRM 28, 6 00Total SalesInventory MovementsCost of Goods SoldFunding from Creditors0RM 34,320RM 3,120Opening Inventory–RM 11,800Net cash from operating activitiesRM 26,220Stock PurchasesRM 54,820Total Non-Current AssetsCurrent AssetsCashRM 5,100DebtorsRM18,000Inventory RM 3,120Total Current AssetsTOTAL ASSETSLess Closing InventoryCash flows from investing activities0Non-current Liabilities–RM 28,600Payments for property, plantand equipmentFinancial Guide for SMEsRM 31,200Total Cost of GoodsSold (COGS)0Total-Non current Liabilities–RM 28,600Net cash from investing activitiesCurrent LiabilitiesRM 20,800Cash flows from financing activitiesRM5,500RM4,120Gross ProfitCredit CardCreditorsRM 5,500Increase in Short Term DebtIncrease in Long Term DebtTotal Current Liabilities RM 9,620RM 9,620TOTAL LIABILITIESRM 15,600Expenses TotalRM 40,000RM 45,500Proceeds from owners (equity)Net cash from financing activitiesRM 45,200NET ASSETSShareholder’s EquityRM 5,200Net Profit before TaxRM 5,1000Net increase in cashCash balance as at start of yearRM 40,000RM 5,200Owners FundsCurrent Year ProfitRM 45,200Total Shareholders’ EquityRM 5,100Cash balance as at end of yearRM 54,820TOTAL LIABILITIES AND EQUITY2121 22chapter 1 01-21 Eng.indd 218/27/11 11:15:40 AM