1000 Business Lessons Every Businessman Must Know

Chapter 59 Financial Statements: A Company's Medical Examination Form (3)
The item "Cash paid to and for employees" reflects the actual cash paid by the enterprise to employees and cash paid for employees, including wages, bonuses, various allowances and subsidies actually paid to employees in the current period, and the cash paid for employees. other expenses.It does not include various expenses paid to retirees and wages paid to construction workers.Various expenses paid to retirees, including pooled pensions paid and expenses of retirees who did not participate in pooled pooling, are reflected in the item "Other cash paid related to operating activities"; wages paid to construction workers , reflected in the item "Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets".

It should be noted that the pension, unemployment and other social insurance funds and supplementary pension insurance paid by the enterprise for the employees; the housing hardship subsidies paid to the employees; the commercial insurance premiums paid by the enterprise for the employees; other benefits paid by the enterprise to or for the employees Expenses, etc., should be reflected in the items of "cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets" and "cash paid to and for employees" according to the nature of the employees' work and service targets.

3. "Various taxes and fees paid" item

The item "Various taxes and fees paid" reflects the various taxes and fees paid by the enterprise according to the regulations, including the taxes and fees incurred and paid in the current period, as well as the taxes and fees paid in previous periods and prepaid taxes in the current period, such as the paid Education surcharges, mineral resource compensation fees, stamp duty, property tax, land value-added tax, vehicle and vessel use tax, prepaid business tax, etc.It does not include the cultivated land occupation tax included in the value of fixed assets and actually paid, nor does it include the value-added tax and income tax refunded in the current period.The value-added tax and income tax refunded in the current period are reflected in the item "Tax Refund Received"
4. "Other cash paid in relation to operating activities" item

The item "Other cash paid related to operating activities" reflects other cash paid by the enterprise related to operating activities other than the above-mentioned items, such as payment of fines, travel expenses paid, business entertainment expenses, insurance premiums, and payments paid for operating leases. cash etc.Other cash related to operating activities, if the value is relatively large, should be reflected in a separate item.

Only after understanding the ins and outs of the operating cash flow can the business leaders make a summary analysis of the company's operating conditions.Only when you read the item on the cash flow statement can you be well-informed and make timely decisions.

483. Cash inflow items from investing activities

The investment activities in the cash flow statement are wider than the usual short-term investment and long-term investment. Investment activities include the purchase and disposal of short-term investment and long-term investment of non-cash equivalents, the purchase, construction and disposal of fixed assets, and the purchase and disposal of intangible assets. Wait.By separately reflecting the cash flow generated by investing activities, it is possible to understand the extent to which resources are transferred out to obtain future income and cash flows, as well as information on the cash inflows brought about by previous resource transfers.

1. "Recovery of cash received from investments" item

The item "cash received from recovery of investment" reflects the cash received by the enterprise from the sale, transfer or due recovery of short-term investments other than cash equivalents, long-term equity investments, and cash received from the recovery of the principal of long-term debt investments.Excludes interest received on long-term debt investments and non-cash assets recovered.

It should be noted that the interest recovered from long-term debt investment is not reflected in this item, but is reflected in the item "cash received from investment income".

2. "Cash received from investment income" item

The item "cash received from investment income" reflects the cash dividends received by the company due to equity investment, the cash received from the distribution of profits from subsidiaries, associates or joint ventures, and the cash received from debt investment. Cash interest income.Stock dividends are not reflected in this item; the interest income of bond investments included in the scope of cash equivalents is reflected in this item.

3. Item "Net cash received from disposal of fixed assets, intangible assets and other long-term assets"

The item "Net cash received from disposal of fixed assets, intangible assets and other long-term assets" reflects the cash obtained by the enterprise from the sale of fixed assets, intangible assets and other long-term assets, after deducting the relevant expenses paid for the disposal of these assets. Forehead.The cash received from disposing of fixed assets, intangible assets and other long-term assets and the cash paid for disposal activities are relatively close in time, and the net amount can better reflect the impact of disposal activities on cash flow. It is large, so it is reflected in net amount.The insurance compensation income received for the scrapping and damage of long-term assets such as fixed assets due to natural disasters and other reasons is also reflected in this item.

It should be noted that the proceeds from the disposal of fixed assets, damages, and insurance compensation income received from disasters are also included in this item; such as the net amount of cash recovered from the disposal of fixed assets, intangible assets and other long-term assets If it is a negative number, it should be reflected in the item "Other cash paid related to investing activities" as cash flow generated from investing activities.

4. "Other cash received related to investment activities" item

The item "Other cash received related to investment activities" reflects other cash received by the enterprise related to investment activities in addition to the above items.Other cash related to investment activities, if the value is relatively large, should be reflected in a separate item.

484. Cash outflow items from investing activities

The cash outflow items of investment activities include "cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets", "cash paid for investment", and "other cash paid related to investment activities".

1. "Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets"

The item "Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets" reflects the cash paid by the enterprise for the purchase and construction of fixed assets, intangible assets and other long-term assets, including the cash paid for the purchase of machinery and equipment and value-added tax , Cash paid for construction projects, wages paid for construction workers and other cash expenditures, excluding the capitalized portion of loan interest incurred for the purchase and construction of fixed assets, and lease fees paid for fixed assets acquired through financing leases.The capitalized portion of borrowing interest incurred for the purchase and construction of fixed assets and the lease fees paid for fixed assets under financing lease should be reflected in the item "Cash flow from financing activities——payment of other cash related to financing activities" , are not reflected in this project.For the fixed assets purchased and constructed by the enterprise in the form of installment payment, the cash paid for the first payment is reflected in this item, and the cash paid in subsequent periods is listed in "Cash flow from financing activities——other cash paid related to financing activities" reflected in the project.

2. "Cash paid for investments" item

The item "cash paid for investment" reflects the cash paid by the enterprise for equity investment and debt investment, including cash paid for short-term stock investment, short-term bond investment, long-term equity investment, and long-term debt investment other than cash equivalents obtained by the enterprise , and additional fees such as commissions and handling fees paid.If the price of bonds purchased by the enterprise includes bond interest, or if the bond is purchased at a premium or discount, it shall be reflected in the actual amount paid.

It should be noted that when an enterprise purchases stocks and bonds, the cash dividends that have been declared but not yet received or the interest on bonds that have expired but have not been received included in the actual payment price shall be included in the "Other Payments Related to Investment Activities" It is reflected in the "cash received" item; the cash dividends paid for the purchase of stocks and bonds that have been declared but not yet received or the bond interests that have expired but have not been received should be reflected in "Other cash received related to investment activities" reflected in the project.

3. "Other cash paid related to investment activities" item

The item "Other cash paid related to investment activities" reflects other cash paid by the enterprise related to investment activities in addition to the above items.Other cash related to investment activities, if the value is relatively large, should be reflected in a separate item.

Investment activities are related to the future development direction and strategy of the company. Observing the investment cash flow projects can reveal the courage of the company's leaders.Aggressive enterprises often invest heavily in fixed assets or other enterprises to seek new development.As the leader of the enterprise, the enterprise leader should have his own ideas on the development of the enterprise. Big investment activities often reflect these ideas of the leaders, where the leaders want to lead the enterprise, and their expectations for the enterprise.

485. Cash inflow items from financing activities

The cash flow statement needs to separately reflect the cash flow from financing activities.Through the cash flow of financing activities reflected in the cash flow statement, it can help the investors and creditors of the enterprise to estimate the claim for the future cash of the enterprise and the price paid for obtaining the previous cash inflow.Business leaders need to grasp the financing situation of the company, and must also understand it through the cash flow items of financing activities in the cash flow statement.

1. "Cash received from absorption of investment" item

The item "cash received from investment" reflects the net amount actually received by the enterprise to raise funds by issuing stocks, bonds, etc. (the net amount after deducting issuance expenses such as commissions paid from issuance income).

It should be noted that auditing, consulting and other expenses directly paid by the enterprise to raise funds by issuing stocks and bonds are not reflected in this item, but are reflected in the item "Other cash paid related to financing activities"; The handling fees, publicity fees, consulting fees, printing fees and other expenses directly paid by financial enterprises shall be deducted from the cash income obtained from the issuance of stocks and bonds, and listed in net amount.

2. "Cash received from borrowing" item

The "cash received from borrowings" item reflects the cash received by enterprises from various short-term and long-term loans.

3. "Other cash received related to financing activities" item

The item "Other cash received related to financing activities" reflects other cash received by the enterprise related to financing activities other than the above-mentioned items.Other cash related to financing activities, if the value is relatively large, should be reflected in a separate item.This item can be filled in according to the record analysis of related subjects.

The financing cash flow is the initial cash flow of the enterprise, and it needs to continuously supplement financing during the existence of the enterprise, so that the enterprise can continue to grow and develop.Enterprise leaders should pay attention to the relationship between financing and enterprise management, try to introduce far-sighted strategic investors, and seek common development with the enterprise.However, enterprises cannot blindly rely on external financing for development. The key is to rely on themselves. External funds are only an external driving force for development. The real development factor still depends on the enterprise itself.

486. Cash outflow items from financing activities

The items of cash outflow from financing activities include "cash paid for debt repayment", "cash paid for distribution of dividends, profits or payment of interest" and "other cash paid related to financing activities".

1. Item "Cash paid for repayment of debt"

The "cash paid for repayment of debts" item reflects the repayment of the principal of debts by enterprises in cash, including: repayment of loan principals of financial enterprises, repayment of principals of bonds due to enterprises, etc.

It should be noted that the loan interest and bond interest repaid by the enterprise are reflected in the item of "cash paid for distribution of dividends, profits or interest payment", but not in this item.

2. "Cash paid for distribution of dividends, profits or payment of interest" item

The item "cash paid for distribution of dividends, profits or interest payments" reflects the cash dividends actually paid by the enterprise, the profits paid to other investment units, or the cash paid for loan interest paid in cash, and bond interest.

It should be noted that, for different purposes of borrowing, the expenditure channels of interest are different, such as construction in progress, financial expenses, etc., but they are all reflected in this item.

3. "Other cash paid related to financing activities" item

The item "Other cash paid related to financing activities" reflects other cash paid by the enterprise related to financing activities other than the above items.Other cash related to financing activities, if the value is relatively large, should be reflected in a separate item.

487. Effect of exchange rate changes on cash flow
When preparing the cash flow statement, the foreign currency cash flow of the enterprise and the cash flow of overseas subsidiaries shall be converted into the functional currency for bookkeeping.This standard stipulates that the foreign currency cash flow of an enterprise and the cash flow of an overseas subsidiary shall be converted at the exchange rate or the average exchange rate on the day when the cash flow occurs.The impact of exchange rate changes on cash should be listed separately in the cash flow statement as a reconciliation item.

The impact of exchange rate changes on cash refers to the exchange rate or the average exchange rate on the day when the cash flow occurs when the foreign currency cash flow of the enterprise and the cash flow of overseas subsidiaries are converted into the functional currency of bookkeeping, and the last line of the cash flow statement "cash and The net increase in foreign currency cash in "Net increase in cash equivalents" is converted at the end-of-period exchange rate.The difference between the two is the impact of exchange rate changes on cash.

(End of this chapter)