"03-27M351 Notes-Day 26 SCF-1

"03-27M351 Notes-Day 26 SCF-1 - transactions or...

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M351 Notes, Class 26: Statement of Cash Flows, pages 1242-1258 A. The Statement of Cash Flows has three elements: Cash Flows From Operations Cash Flows From Investment Cash Flows From Financing B. There are two methods of preparing Cash Flow From Operations portion of the statement of cash flows: direct and indirect. In M351 this semester, we will only use the indirect method. C. Illustration 23-1 on page 1245 is very helpful in identifying the kinds of
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Unformatted text preview: transactions or business activity that produce one of the three kinds of cash flows. Note that some transactions produce two kinds of cash flows (e.g. payment of principal and interest on a note produces cash flows from financing [principal payment] and from operations [interest payment]). D. On pages 1248-1258 are three examples of the collection of data for the preparation of the statement of cash flows. 1...
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This note was uploaded on 04/09/2011 for the course MGMT 351 taught by Professor Staff during the Winter '08 term at Purdue University-West Lafayette.

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