Cash_Flow_Statement ppt - CashFlowStatement...

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Cash Flow Statement Financial Final Review
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Overview What the heck is it? Why is it important? Format of the CFS Helpful Hints
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What the heck is it? Statement that accurately tells  users of the cash (and  equivalents) position of a firm Reconciles Net Income from  accrual basis to cash basis
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Why is it important? Firms need cash to Pay their bills Pay their employees Users need to know the cash position to  see if company is viable REMEMBER: Net Income (loss) does not  mean positive (negative) cash!
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Format of CFS Two methods Direct  Indirect Only difference is direct has different formatting of  OPERATING section Focus will be on Indirect Method, but  know that the direct method does exist  (even though no one uses it).
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Format of CFS Indirect method 3 Sections of Cash Flow Statement Operating Activities
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This note was uploaded on 11/14/2009 for the course AEM 3230 taught by Professor Little,j.e. during the Spring '08 term at Cornell University (Engineering School).

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Cash_Flow_Statement ppt - CashFlowStatement...

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