1, "accounts receivable" project, should be based on "accounts receivable" account and "advance receipts" account belongs to the ledger account of the total closing debit balance, minus the "provision for bad debts" account of the bad debt provision for accounts receivable closing balance. "Provision for bad debts" account on the accounts receivable bad debt provision for the closing balance of the amount to fill in.

2, "prepayments" project, should be based on the "prepayments" account and "accounts payable" account belongs to the detailed account of the total closing debit balance, less the "provision for bad debts" account. "Provision for bad debts" account on the prepayment of bad debt provision for the closing balance of the amount to fill in.

3, "accounts payable" project, should be based on "accounts payable" account and "prepaid accounts" account belongs to the sub-accounts of the total closing credit balance.

4, "advance receipts" project, should be based on "advance receipts" account and "accounts receivable" account belongs to the ledger account of the total closing credit balance.

5, "notes receivable", "dividends receivable", "interest receivable", "other receivables "Project should be based on the closing balance of the corresponding account, minus the "bad debt provision" account in the corresponding items of bad debt provision for the closing balance of the amount filled.

1) Expenditures for the purchase of fixed assets, intangible assets, etc., are consistently higher than net cash flows from operating activities, indicating that the company continues to borrow money to maintain its investment behavior.

2) Inside the cash inflow from investing activities, a large amount of cash is received as a result of the sale of fixed assets or other long-term assets. This may be a sign of the decline of the business capacity, a signal light for the business performance into the down runway.

Anomalies in cash flows from financing cash activities

1) The cash received by a business for obtaining a loan is much smaller than the cash paid for returning the loan. This may reveal that the bank has reduced its willingness to lend to the business and is using a "scam" to get the loan back

2) The business has paid significantly higher than normal interest or intermediation costs to raise the money - reflected in the following "Distribution of dividends, profits or interest paid in cash" and "payment of other cash related to financing activities" in the details of the two accounts. Of course, this could also mean that the company is experiencing an existential crisis that must be saved by the jungle.

Searching for high-quality enterprises through the cash flow statement

1) net cash flow from operating activities＞net profit＞0;

2) cash received from the sale of goods and services ≥ operating income;

3) net cash flow from investing activities ＜0, and mainly invested in new projects, rather than used to maintain the original production capacity;

4) Net increase in cash and cash equivalents > 0, which can be relaxed to exclude the dividend factor, the account > 0;

5) The balance of cash and cash equivalents at the end of the period ≥ interest-bearing liabilities, which can be relaxed to cash and cash equivalents at the end of the period Banker's acceptances in notes receivable > interest-bearing liabilities.

Baidu Encyclopedia-Financial Statements