Comparative Statement of Cash Flows
Definition: A comparative statement of cash flows shows operating, investing, and financing activities side by side for two or more periods, with dollar and pe…
A comparative statement of cash flows shows operating, investing, and financing activities side by side for two or more periods, with dollar and percentage changes
| Fictitious Conglomeration Corporation | |||||||
|---|---|---|---|---|---|---|---|
| Statement of Cash Flows (Indirect Method) | |||||||
| For the Year Ended December 31 | 2024 | 2025 | $ Change | % Change | 2024 % | 2025 % | Δ pp |
| Cash Flows from Operating Activities | |||||||
| Net Income | $104,000 | $124,840 | 20,840 | 20.0% | 64.2% | 63.4% | (0.8) |
| Adjustments for Non-Cash Items: | |||||||
| Depreciation | $54,000 | $68,000 | 14,000 | 25.9% | 33.3% | 34.5% | +1.2 |
| Amortization of Intangible Assets | 8,000 | 8,000 | — | — | 4.9% | 4.1% | (0.9) |
| Deferred Income Tax | 3,400 | 4,200 | 800 | 23.5% | 2.1% | 2.1% | — |
| Changes in Operating Assets & Liabilities: | |||||||
| (Increase) in Accounts Receivable | (14,800) | (19,280) | (4,480) | (30.3%) | -9.1% | -9.8% | (0.7) |
| (Increase) in Inventory | (8,500) | (12,300) | (3,800) | (44.7%) | -5.2% | -6.2% | (1.0) |
| Decrease in Prepaid Expenses | 2,400 | 3,600 | 1,200 | 50.0% | 1.5% | 1.8% | +0.3 |
| Increase in Accounts Payable | 7,600 | 10,200 | 2,600 | 34.2% | 4.7% | 5.2% | +0.5 |
| Increase in Accrued Expenses | 4,200 | 6,540 | 2,340 | 55.7% | 2.6% | 3.3% | +0.7 |
| Increase in Unearned Revenue | 1,800 | 3,200 | 1,400 | 77.8% | 1.1% | 1.6% | +0.5 |
| Net Cash from Operating Activities | $162,100 | $197,000 | 34,900 | 21.5% | 100.0% | 100.0% | — |
| Cash Flows from Investing Activities | |||||||
| Purchase of Property, Plant & Equipment | ($85,000) | ($125,000) | (40,000) | (47.1%) | 89.5% | 89.3% | (0.2) |
| Purchase of Short-Term Investments | (10,000) | (15,000) | (5,000) | (50.0%) | 10.5% | 10.7% | +0.2 |
| Net Cash from Investing Activities | ($95,000) | ($140,000) | (45,000) | (47.4%) | 100.0% | 100.0% | — |
| Cash Flows from Financing Activities | |||||||
| Proceeds from Long-Term Borrowings | $30,000 | $50,000 | 20,000 | 66.7% | -100.0% | -200.0% | (100.0) |
| Repayment of Long-Term Debt | (20,000) | (25,000) | (5,000) | (25.0%) | 66.7% | 100.0% | +33.3 |
| Member Distributions | (40,000) | (50,000) | (10,000) | (25.0%) | 133.3% | 200.0% | +66.7 |
| Net Cash from Financing Activities | ($30,000) | ($25,000) | 5,000 | 16.7% | 100.0% | 100.0% | — |
| Net Increase in Cash | $37,100 | $32,000 | (5,100) | (13.7%) | 100.0% | 100.0% | — |
| Cash at Beginning of Year | 55,400 | 92,500 | 37,100 | 67.0% | 149.3% | 289.1% | +139.7 |
| Cash at End of Year | $92,500 | $124,500 | 32,000 | 34.6% | 249.3% | 389.1% | +139.7 |
Operating + Investing + Financing = $197,000 + ($140,000) + ($25,000) = $32,000 net increase
Indirect Method: Starts with net income and adjusts for non-cash items (depreciation, amortization) and changes in working capital to arrive at cash from operations. This is the most common method because it reconciles accrual-basis income to cash flow. Both methods produce the same Net Cash from Operating Activities; only the presentation of the operating section differs. Investing and financing activities are identical under both methods.
Related Subjects
Understand First
- Statement of Cash FlowsSingle-period version
Related
- Comparative Balance SheetComparative balance sheet
- Comparative Income StatementComparative income statement
See Also
- Horizontal AnalysisPeriod-to-period trend analysis
External Links
- Cash flow statement — Wikipedia