Lecture 3

Lecture 3 - FIN 311 Instructor Syed Walid Reza Lecture 3...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN 311 Instructor: Syed Walid Reza Lecture 3 Spring 2016
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Today: Chapter 3 Working with Financial Statements Cash Flows and Financial Statements: A Closer Look Standardized Financial Statements Ratio Analysis The DuPont Identity 2
Image of page 2
Statement of Cash Flows The cash flow identity summarizes the total cash of all transactions during the year Now, we look at events that lead to those numbers …and generate the statement of cash flows The statement of cash flows has three parts Cash flow from operations Cash flow from investments Cash flow from financing 3
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Sources or uses of cash Source: Cash inflow – occurs when we “sell” something and we add to the cash account Uses: Cash outflow – occurs when we “buy” something 1. Decrease in asset account Accounts receivable, inventory, and net fixed assets 2. Increase in asset account Cash and other current assets 3. Increase in liability or equity account Accounts payable, other current liabilities, and common stock 4. Decrease in liability or equity account Notes payable and long-term debt 4
Image of page 4
Statement of Cash Flows Changes divided into three major categories: 1. Operating Activity – includes net income and changes
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern