17.2 Format of a Statement of cash flows
　　Standard headings
　　IAS7 requires a Statement of cash flows to be presented using standard headings:
　　(1)Cash flows from operating activities
　　(2)Cash flows from investing activities
　　(3)Cash flows from financing activities
　　Proforma Statement of cash flows
　　Statement of cash flows for the period ended…
　　$000　　　 $000
　　Cash flows from operating activities
　　Cash generated from operation　　　　　　2,550
　　Interest paid 　　　　　　　　　　　　　　　　　(270)
　　Preference dividends paid 　　　　　　　　　　　(300)
　　Income taxes paid　　　　　　　　　　　　　　 (420)
　　Net cash from operating activities　　　　　　　　　　　　 1,560
　　Cash flows from investing activities
　　Purchase of property, plant and equipment　　　 (900)
　　Proceeds of sale of equipment　　　　　　　　　　 20
　　Interest received　　　　　　　　　　　　　　　　 200
　　Dividend received　　　　　　　　　　　　　　　　 200
　　Net cash used in investing activities 　　　　　　　(480)
　　Cash flows from financing activities
　　Equity dividend paid　　　　　　　　　　　　　 (200)
　　Proceeds from issuance of share capital　　　　 1,210
　　Repayment of loans　　　　　　　　　　　　　　 (2,000)
　　Net cash used in financing activities 　　　　　　　(990)
　　Net increase in cash and cash equivalent　　　　　　　　　　 90
　　Cash and cash equivalent at the beginning of the period　　 120
　　Cash and cash equivalent at the end of the period　　210
　　Key points:
　　- Operating activities: are the principal revenue-generating activities of the business.
　　- Investing activities: are cash spent on non-current assets, proceeds of sale of non-current assets and income from investment.
　　- Financing activities: include the proceeds of issue of shares and long-term
　　Borrowing made or repaid.
　　- Cash: included deposits and overdrafts that are repayable on demand.
　　- Cash equivalents: are short term, highly liquid and risk free investments that can be easily converted into known amounts of cash, such as term deposits and government bonds.