To get the closing balance of cash, following steps are required to be taken to get the solution.
When these 3 steps are combined with cash from opening balance, you can get the result of closing balance of cash.
Knowing cash from operation
This step depicts that what is the net profit amount in a business operation in cash form.
Knowing cash from investment
This step shows the comparison of investing activities between inflow of cash and outflow of cash.
Inside currency inflow, you have to see following things,
When outflow of money is low, you have to take into account cost of fixed assets investment.
Knowing cash from financing
This step involves a comparison between inflow of money and outflow of money from financing activities.
In cash inflow, look for:
In cash outflow,
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