Cash Flow Handout

Cash Flow Handout - STATEMENT OF CASH FLOWS INDIRECT METHOD...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
STATEMENT OF CASH FLOWS INDIRECT METHOD I. CASH FLOWS FROM OPERATING ACTIVITIES Net Income Add: Depreciation and Amortization Decrease in current assets Increase in current liabilities Losses on disposal of assets Deduct: Increases in current assets Decreases in current liabilities Gain on disposal of assets II. CASH FLOWS FROM INVESTING ACTIVITIES : INFLOWS: Cash from sale of fixed (long-term) assets such as buildings, land or equipment Cash from sale of investments OUTFLOWS: Cash paid for purchase of fixed assets III. CASH FLOWS FROM FINANCING ACTIVITIES : INFLOWS: Cash received from sale of common stock, bonds, notes, or additional Paid-In-Capital (PIC)
Background image of page 1

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

View Full Document Right Arrow Icon
OUTFLOWS: Cash paid for dividends Cash paid for acquiring treasury stock Cash paid for payment of debt such as retiring bonds Steps in preparing a Statement of Cash Flows: Indirect Method 1. Calculate the Net Change (increase or decrease) for every account on the comparative balance sheets and write the amount plus whether it was an
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 3

Cash Flow Handout - STATEMENT OF CASH FLOWS INDIRECT METHOD...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online