Assess the Components of Cash Flow Statements Research Paper

Assess the Components of Cash Flow Statements - Research Paper Example The implementation of any non cash undergoes changes. 2. There are two methods of preparing a cash flow statement namely;- direct method and indirect method. Direct method uses real cash flow data from the organization’s operations. It presents major classes of gross cash receipts and payments. It is typically used by small firms. While preparing a cash flow using the direct technique, items such as amortization of insubstantial assets, preliminary expenditures, depreciation, and debenture discount are disregarded from the cash flow statement given that the direct method is inclusive of non-cash and cash transactions. Indirect method derives the data from the income statement and from changes on the balance sheet from one period to the next. The income statement and the balance sheet are based on the accrual accounting. It is a partial communication of accumulation basis gains to cash basis gains. 3. Different components of the cash flow statement employ indirect method. For instance we arrive at net cash flow from operating activities indirectly by starting with reported net income and working backwards to convert that amount to a cash basis. Depreciation expense does not reduce cash, but it is subtracted in the income statement. In the indirect method, positive adjustments to net income are made for decreases in related assets and increases in related liabilities, while negative adjustments are made for increases in those assets and decreases in those liabilities (Brahmasrene et al, 2004). The next section of the Statement of Cash Flows is Cash Flows from Investing Activities. Usually, this part comprises of any long-term savings the business makes plus any investment in fixed assets, such as plant and equipment. The last section of the cash flow statement is Cash Flows from Financing Activities (Dechow, 1994). Here, you have to finance your firm with long-term bank loans that have an increase and this is prepared using long terms. If you unite the

Trade relations between India and China from the beginning to 1500 AD Essay

Trade relations between India and China from the beginning to 1500 AD - Essay Example The aim of this research paper is to investigate the history of India-China trade relations from ancient times till sixteenth century. There were several trade centers which served as essential commercial transactions between the two countries. The important trade centers in India were Puskalavati, Taxila, Tamralipti, Kanchi, etc. Puskalavati is considered to be the first gateway of ancient India and was the most significant commercial mart because it contributed actively in commercial transaction between India and China in the first century A.D. During the period of Sakas and Kusanas, trade between India and China was done through Puskalavati. Taxila was the hub of international trade and was essential trade route between India and Central Asia (Shaffer, 123). It also assisted western traders in their trade with China. Chinese merchants used to come to Kanchi through foreign ships to buy pearls, glass, precious stones and other Indian products and exchanged gold and silver. Tamralipti was another important port in Bengal which carried trade links with China (Shaffer, 129). Canton was the essential Chinese city whi ch had established trade links in India. Other important trade links between China and India included Ping-Yang and Kwi-Yang. Trade relations between the two countries existed during the Madagh-Maurya era of fifth and sixth centuries B.C. The Gupta period further proves it. Sixth Century BC indicates the fundamental period in Chinese history because the State of Tsin had introduced important amendments in economic and political fields (Eberhard, 34). This had increased the commercial relationship between India through land routes. During sixth century B.C, India and China took advantage of the trade opportunities that existed. The Indian muslin silk cloth had captured the international market which also helped to popularize the Chinese silk. Great demands for Chinese silk from all over the world came and