Cashflow statement is a MUST

[Vitorcm]

Please consider to add a cashflow statement in the Financial reports, this is very basic financial report for any company and wil drastically increase the simulation. I can help with cashflow comcepts if needes.

Thanks!!!

[David]

Someone also mentioned this a while ago. Please let us know your concept for a cash flow statement and we will consider it for the Banking DLC.

[Vitorcm]

Hi

I will try to summarize the cashflow statement for real life:

Cashflow statement should isolate some flows in order to provide a clear understand if generated money are comming from core business or not, and also to provide a picture if the company are issueing or paying bonds, buying or selling assets, etc.

*Summary of Investopedia material. Let me know if you have any question.

1) Operating activities
is cash flow that arises from normal operations such as revenues and cash operating expenses net of taxes.

- inflow (+)
Revenue from sale of goods and services
Interest (from debt instruments of other entities)
Dividends (from equities of other entities)
- outflow (-)
Payments to suppliers
Payments to employees
Payments to government
Payments to lenders
Payments for other expenses related to core business

2) Investing activities
is cash flow that arises from investment activities such as the acquisition or disposition of current and fixed assets.

- inflow (+)
Sale of property, plant and equipment
Sale of debt or equity securities (other entities)
Collection of principal on loans to other entities
- outflow (-)
Purchase of property, plant and equipment
Purchase of debt or equity securities (other entities)
Lending to other entities

3) Financing activities
is cash flow that arises from raising (or decreasing) cash through the issuance (or retraction) of additional shares, or through short-term or long-term debt for the company's operations. This includes:

- inflow (+)
Sale of equity securities
Issuance of debt securities
- outflow (-)
Dividends to shareholders
Redemption of long-term debt
Redemption of capital stock


Here is a picture on how it should look: http://www.accounting-basics-for-studen ... ample.html
Read more: Cash Flow https://www.investopedia.com/walkthroug ... z5IcvobGFv

[chengtsai]

Having an overview feature on cash flow is a big plus to this game.

[bdubbs]

I haven't played in a while but for the purposes of this game I'm not really sure a cash flow statement is such a "must". As far as corporate accounting goes the main purpose to a cash flow statement is to have a more comprehensive understanding of how much actual cash is coming in and out of a company, and where it's going. Real businesses write off massive sums of non cash expenses every year which ultimately lowers their bottom line on the income statement, thus lowering their taxable income. When you buy an aparment, retail store, factory, whatever in cap lab there's no depreciation of durable assets, and no amortization of intangible assets. You can look at the balance sheet to at least know how much total cash has come in or gone out in that year in total.

[klompen]

I agrre with OP!
Cashflow statement is giving you an idea of status.
When the company grows large, and if expanding into different branch, It's hard holding track.

Pluss I think it would be a great tool or measurement. Pluss a feature for the future of the game.
(how much cash did you get from a spesific subsidy divident)

[David]

I've added a poll for this suggestion for the community to vote.

[buells]

Pretty sure for this game there is not much in terms of accrual accounting. Costs are generally expensed as incurred and cash payments are made when incurred. Likewise, for revenue, cash is collected when sales occur. I THINK there is an exception for inventory, where costs would be expensed when products are sold.

I also don't think interest accrues but is paid in real time. I could be misremembering that.

[David]

Update: With this poll approaching the threshold of 30 votes , I've forwarded it to the dev team and request them to consider it.