Chapter_5 - Reporting and Interpreting Cash Flows Chapter 5...

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

View Full Document Right Arrow Icon
Reporting and Interpreting Cash Flows Chapter 5
Background image of page 1

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

View Full DocumentRight Arrow Icon
Income versus Cash Flows 2008 2007 2006 Net Income $619 $946 $796 Operating Income $1,057 $1,164 $1,129 Cash from Operations $1,079 $1,333 $1,049 Net increase (decrease) in cash ($260) $254 $2
Background image of page 2
Classification of Cash Flows Operating activities Generated from usual activities of the firm Receiving interest Paying expenses Investing activities Purchase or sale of long term facilities Purchase or sale of investment of other companies Financing activities Related to us issuing bonds and shares of the company Redeeming bonds and shares
Background image of page 3

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

View Full DocumentRight Arrow Icon
Current assets + non current assets = current liabilities + non current liabilities + owners’ equity Operating investing operating financing Financing
Background image of page 4
Direct method Cash inflow and outflow directly associated with the accounts Indirect method Start with net income then adjust net income for any items that do not involve cash flows or
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 04/02/2010 for the course AFM AFM 101 taught by Professor Kennedy during the Fall '09 term at Waterloo.

Page1 / 19

Chapter_5 - Reporting and Interpreting Cash Flows Chapter 5...

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