FINANCIAL POSITION REPORT & CASH FLOW

STATEMENT
ANALYZE TRANSACTIONS TO THE ACCOUNT

Julius Caesar Bintang 1411800021

Djoko Sampurno 1411800076
Financial Position Report
Financial statements that report assets, liabilities, and equity of the
company at certain times to facilitate analysis in predicting cash
flows in the future.
ASSETS LIABILITIES EQUITY
 Current Assets

1) Cash
2) Short-term investment
3)Accounts receivable
4) Stock
Prepaid expenses

ASSETS
Fixed assets or Tangible Assets
1) Land
2) Building
3) Machinery and equipment
4) Long term investment
Intangible assets
1. Patent
2. Copyright
3. Goodwill
 Examples of current or short-term debt are:

1. Business debt (trade debt)

2. Salary debt
3. Interest debt
4. Wesel pays short term
5. Current portion of long-term debt
6. Prepaid income
LIABILITIES

Long-term debt

1. Wesel pays
2. Mortgage debt
3. Bond debt
 1. Capital stock;
EQUITY 2. Share agio;
3. Retained earning;
4. Profit reserves; and
5. Donation capital.
Financial Statement Forms
• In general, the balance sheet can be arranged in two forms, namely:

• 1. Form of Skontro (Account Form) In this form, estimates for all assets are arranged on
the left, and for estimates of debt and capital are placed on the right.

• 2. Vertical Form (The Report Form) In this form, estimates of assets, debt, and capital are
arranged sequentially down.
SCONTRO FORM
Vertical Form
Cash Flow Statement
DEFINITION
A cash flow report is a report that shows details of the cash inflows (receipts) and
outflows (expenses) of a company in a given period.
Cash Flow Element
• Cash Flow Element Before you make a cash flow report, you need to know three
important elements in cash flow, namely:
• 1) Cash flow from business activities (operating activities) This first cash flow is cash flow
that comes from business activities either income or expenditure. For example:
recipients from consumers, pay monthly salaries, pay electricity, and so on.
• 2) Cash flow from investment activities (investing activity) This cash flow comes from
the company's investment activities whether it is income or expenditure. Activities that
enter into this investment are sales and purchase activities of company assets and
activities that are related to the company's receivables. For example: purchasing a
new vehicle.
• 3) Cash flow from financing activities This third cash flow is the cash flow that comes
from the funding obtained by the company. Examples: stock emissions, bond sales,
and etc
Cash Flow Method
• Cash Flow Method In preparing cash flow, there are two methods used, namely the
Direct Cash Flow method and the Indirect Cash Flow method. But on this occasion we
will discuss how to make cash flow reports using indirect methods with examples. The
first step in making cash flow is ensuring that you already have two data sources to use,
namely: - Current period income statement. - Balance sheet of the current period with
the balance sheet of the previous year. In order to be clearer, the following are
examples in the preparation in the 2017 Cash Flow Statement.
• Step 1: 2017 Profit Loss Report Data Consider the following example of 2017 income
statement from PT Piatto Indonesia

PT. Piatto Indonesia

Net Income Report
01/01/2017 – 31/12/2017
Sales 75,000,000
Cost of goods sold 36,000,000

Gross profit 39,000,000

Marketing Expenses 6,000,000

Administrative and General Expenses 8,000,000
Water Electricity Load telephone 5,200,000
Vehicle Depreciation Expenses 400,000
Building Depreciation Expenses 400,000
Total Operating Expenses 20,000,000
Net Income 19,000,000
Step 3 : Compare The Both of
Balance
 PT Piatto Indonesia
Balance
2016 & 2017
Year 2017 2016 net Change
ASSETS
CURRENT ASSET
Cash 4,000,000 8,000,000 (4,000,000)
Account receivable 20,000,000 16,000,000 4,000,000
Losses Reserves Receivables (1,000,000) (800,000) (200,000)
Equipment 2,000,000 3,000,000 (1,000,000)
Inventory 14,000,000 10,000,000 4,000,000

FIXED ASSETS
Vehicle 26,000,000 20,000,000 6,000,000
I. Vehicle depreciation (2,000,000) (1,600,000) (400,000)
Building 40,000,000 40,000,000 0
I. depreciation Building (4,000,000) (3,600,000) (400,000)
Soil 30,000,000 30,000,000 0
Total assets 129 million 121 million 8,000,000

LIABILITIES AND EQUITY

LIABILITY
Accounts payable 20,000,000 30,000,000 (10,000,000)
Rental debt 10,000,000 20,000,000 (10,000,000)
Bank debt 40,000,000 60,000,000 (20,000,000)
TOTAL DEBT 70,000,000 110 million (40,000,000)

EQUITY
Capital 50,000,000 11,000,000 39,000,000
Prive (10,000,000) 0 (10,000,000)
Profit / Loss this period 19,000,000 0 19,000,000
TOTAL EQUITY 59,000,000 11,000,000 48,000,000

TOTAL LIABILITIES & EQUITY 129 million 121 million 8,000,000

Step 4: Perform Cash Flow Statements
From Operating Activity
• This period's profit / loss is 19,000,000
• Increase in Trade Receivables (4,000,000)
• Increase in Reserves of 200,000 Receivable Losses
• Increase in Inventory of Goods (4,000,000)
• Decreasing Equipment 1,000,000
• Vehicle Depreciation Load & Building 800,000
• Decrease in Trade Debt (10,000,000)
• Decrease in Debt rent (10,000,000)
• Total (7,000,000)
From Investing Activity
• Cash flows increase due to a decrease in the value of fixed assets, while cash flows
decrease due to an increase in fixed assets. In the example problem above, the result
is that the cash flow is reduced by Rp. 6,000,000.
From Financing Activity
• To get the value Financing Activities can be done by moving figures on the Net
Change column on the balance sheet in 2016 and 2017 from the Long-Term Liabilities
and Equity. To the positive values that still leave it alone and let the negative value
remains negative.

• Bank Debt Reduction (20,000,000)

• Increase in Capital 39,000,000
• Addition Prive 10,000,000)
• Total 9,000,000

• Then total all of its value, in the above example obtained by the addition of cash worth
Rp9.000.000
The Result
PT Piatto Indonesia
Cash flow statement
2017
A Cash Flows from Operating Activities (7,000,000)
B Cash Flows from Investing Activities (6,000,000)
C Cash Flows from Financing Activities 9,000,000
D Activities Cash Total (A + B + C) (4,000,000)
E Beginning Cash Balance (From Balance 2016) 8,000,000
F Should Cash Balance (E + D) 4,000,000

G Ending Reality (From Balance 2017) 4,000,000

H Difference (FG) 0
Analyze Transactions To The Account
 Transaction
with
Customer Transaction
with
Transaction
suppliers
with owner

Type of Financial
Transaction

Transactions
with value Transaction
added with
providers(Em creditors
ployee)
Steps To Analyze Transactions
1. Understand the type of account and its components such as assets, capital
accounts, debt consists of anything
2. Determine the effect of a transaction on an asset, liability, capital, expense
or income account.
3. Determine the effect for each account, whether the transaction makes the
account balance increase or decrease.
4. Write an increase or decrease in the balance of the account next to debit or
credit.
Example
• Company A was incorporated on January 1, 2019 with an initial capital $100,000 .
During the first month of its operations, the company engaged in the following
transactions:
• Date Transaction
• Jan 2 An amount of $36,000 was paid as advance rent for three months.
• Jan 3 Paid $60,000 cash on the purchase of equipment costing $80,000. The remaining amount was
recognized as a one year note payable with interest rate of 9%.
• Jan 4 Purchased office supplies costing $17,600 on account.
• Jan 13 Provided services to its customers and received $28,500 in cash.
• Jan 13 Paid the accounts payable on the office supplies purchased on January 4.
• Jan 14 Paid wages to its employees for first two weeks of January, aggregating $19,100.
• Jan 18 Provided $54,100 worth of services to its customers. They paid $32,900 and promised to pay the
remaining amount.
• Jan 23 Received $15,300 from customers for the services provided on January 18.
• Jan 25 Received $4,000 as an advance payment from customers.
• Jan 26 Purchased office supplies costing $5,200 on account.
• Jan 28 Paid wages to its employees for the third and fourth week of January: $19,100.
• Jan 31 Paid $5,000 as dividends.
• Jan 31 Received electricity bill of $2,470.
• Jan 31 Received telephone bill of $1,494.
• Jan 31 Miscellaneous expenses paid during the month totaled $3,470
TOTAL 408,934 408,934
Exercise
• On January 5, 2018, Pak Jaya invested Rp500,000,000 in the company PT Jaya
Abadi.
• On January 11, 2018, a total of Rp. 20,000,000 was paid for office rent for one
year.
• January 15, 2018 purchased equipment and office supplies of Rp 10,000,000
and Rp 5,000,000, respectively.
• January 20, 2018 receives cash sales of Rp 10,000,000.
• January 25, 2018 pays employee salaries for January of Rp. 20,000,000.