AC 101 Fall 2007 Ch 5

AC 101 Fall 2007 Ch 5 - Hughes Ayers Hoskin John Wiley Sons...

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

View Full Document Right Arrow Icon
Financial Statements: Measuring Cash Flow Chapter Five Prepared by: Sarita Sheth Santa Monica College Hughes • Ayers • Hoskin Hughes • Ayers • Hoskin John Wiley & Sons, Inc. 2004
Background image of page 1

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

View Full DocumentRight Arrow Icon
Chapter Five Objectives 1. Understand and interpret the information about operating, investing, and financing activities found in the Statement of Cash Flows. 2. Explain the relationship between the Statement of Cash Flows and changes in balance sheet accounts 3. Construct a Statement of Cash Flows using the indirect method. 4. Define free cash flows and explain how they can be determined from the Statement of Cash Flows.
Background image of page 2
Review of Statement of Cash Flows Three main sections: 1. Cash from Operations 2. Cash from Investing 3. Cash from Financing
Background image of page 3

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

View Full DocumentRight Arrow Icon
Timing Issues There will be timing differences between accrual income and operating cash flow. Analysts cannot only look at accrual income. Cash may not have been paid (even though expenses were incurred) or received (despite income recognition). A company may have liquidity issues, thus FASB 95 requires the preparation of a Statement of Cash Flows.
Background image of page 4
Cash in from sale of goods and services. Cash out from expensed related to goods
Background image of page 5

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

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

This note was uploaded on 09/30/2008 for the course AC 101 taught by Professor Ammons during the Spring '08 term at Quinnipiac.

Page1 / 16

AC 101 Fall 2007 Ch 5 - Hughes Ayers Hoskin John Wiley Sons...

This preview shows document pages 1 - 6. Sign up to view the full document.

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