Unformatted text preview: = Expense + End. Prepaid – Beg. Prepaid Cash Flows from Investing Activities Cash Inflows: Sale of PPE Cash Outflows: Purchase of PPE Cash Received from Sale = Book Value of PPE Sold + Gain(Loss) on Sale Book Value of PPE Sold = Original Cost – Accum. Dep. Cash Flows from Financing Activities Cash Inflows: Issuance of stock, Issuance of bonds, notes, ST/LT borrowings, borrowing cash from creditors Cash Outflows: Payment of dividends, Repurchase of stock, payment of amounts borrowed + Common Stock Issued- Notes Payable Payments- Dividends Paid - Stock Repurchased Analyzing Cash Flows- In the long run, Cash Flows from Operations is higher than Net Income because cash from operations does not include the cost of equipment.- You can inflate Net Income by increasing the value of inventory & AR assets the company can interpret the value of. (AR that is never collected, fake inventory)...
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This note was uploaded on 04/09/2008 for the course ACC FA taught by Professor Bartov during the Spring '08 term at NYU.
- Spring '08