CashflowOutline - Outline of Operating Cashflows The...

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Outline of Operating Cashflows The cashflow statement has three parts: 1) Cashflow from Operations, 2) Cashflow from Investing Acitivites (mainly selling and buying long-term assets and investments, and 3) Cashflow from Financing Activities (sources: from issuing stock and from borrowing; uses: to pay off debt principle and to pay dividends). Of these three, it is usually the first one, Cashflow from Operations, that baffles most readers. Below is an outline of what you might see in this part of the Cashflow Statement. _______________________________________________________________________ _ Cashflow from Operations. Net Income xxx + Depreciation and Amortization xxx + decreases in Curr. Receivables or - increases in these xxx or (xxx) + DECREASES IN + decreases in Inventories or - increases in these xxx or (xxx) CURRENT ASSETS OR + decreases in “Prepaids” or - increases in these xxx or (xxx) - INCREASES IN THESE + in creases in Current Payables or - de creases in these xxx or (xxx)
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This note was uploaded on 06/17/2011 for the course ACC 101 taught by Professor Paul during the Spring '11 term at Aligarh Muslim University.

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CashflowOutline - Outline of Operating Cashflows The...

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