 Now, let us see how we should complete a question of cash flow statement involving some difficult adjustments. Cash flow statement as of December 2007, net income is given from the income statement and then we add depreciation in it. It is also that depreciation figure is given in the notes. When depreciation, loss on sale of equipment, then gain on sale of investments, so that is a reduction. Increasing account receivable, increasing inventory, increasing payable, so make it sure that you understand that the brackets are outflow and without bracket figures are inflows. Increasing is added back and building equipment all that, but the receivables, inventory, payable they are from the working capital figures. Increasing payable is inflow. As I said the formula, as I suggested the formula you keep in mind, increasing liability inflow, decreasing liability outflow. Now, increasing accrued expenses also a liability, so if it increases it is inflow and if it decreases it is outflow, so in this case it is increases as per the balance sheet, so there is an inflow. So cash generated from operating activity is 43,000 per to 5. Now in working look here, another important thing which we want to explain you here that there is two figures income balance sheet of last year, the balance sheet of this year. The total figures over there and the difference of those figures either inflow or outflow, so we need to reconcile that difference, that change in those figures whether they are giving inflow or outflow, so I will suggest for the beginners that what you do that when you have the two balance sheets you work out the differences, so there simply you can understand whether there is inflow or outflow, the formula which I have given you. So in this case we have to reconcile the retained earnings, then we have the machinery see opening minus disposal plus purchases is equal to closing, this is the formula. So using that we have worked out that how much the you got the machinery, then equipment equity investments also, similarly the formula is the same, so you got the figures, you have the equation, so put the equation three figures available and you come up with the fourth figure itself, similarly in building the same formula is being used. Collection from customer, now this is for the direct methods, again I said that you need to find out first of all how much we collected from the customer, again receivables opening plus sales minus closing receivables, the formula is there. Similarly in case of purchases I said it's two ways, the first of all you need to find out the purchases and how the purchase are going to be determined, we got cost of goods sold plus closing minus opening and then you got the figure of purchases and then the payment for supplier, in this case opening accounts payable plus purchases minus closing accounts payable, the balance is paid to the supplier. Similarly operating expenses, now forget, don't forget this operating expense do not include depreciation, please it's a separate thing altogether depreciation that will be adjusted up, so in direct method we don't have depreciation, we have opening accrued expenses plus charge to the income and then minus the closing balance of accrued expenses, so you come up with the payment for the expenses, so direct method the answer again the same, collection payments, supplier payment for expenses and cash from operating activity the same figure 43,425, so the cash flow operating and financing activity will remain the same, so for the indirect method is concerned, let's see the other investing activity, purchase of building notes is there, purchase of investments again clear, purchase of machinery is also clear, so with those notes you will see the figures are there, sale of investments given and sale of machinery is also given. Net cash outflow investing activities, if you see the bracket figures are negative that is outflow and the positive figures are without a bracket, so total net cash outflow investing activities, it means you paid more on investing activities because there is a negative and coming to the cash flow from financing activity we have paid dividend, do you remember they have also paid stock dividend that will not be reported here because there is no cash flow is involved, now repayment of long-term payables, long-term liabilities again, so cash outflow on financing activity that is 31,000, 125,000, it's an outflow, now in operating activity there is positive inflow, in investing activity there is a negative inflow and similarly in financing activity again there is a negative inflow, but if you some of these three figures, so there is a positive net cash inflow for the year 8,250, now if you add on this, if you put your opening balance of cash opening balance last year's balance sheet, so you will come up with the closing balance of this year's balance sheet, the cash and cash inflows