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Unformatted text preview: List in orders listed above Net increase/decrease in cash Statement of cash flows is essentially a reconciliation Operating hardships accruals, depreciation, etc dont involve disbursement of cash, rather recognition Indirect method current assets increase, then subtract from net income, and do opposite with decreases in current assets; liabilities work opposite The money we didnt receive in accounts receivable is subtracted out from net income, because we didnt get the cash yet. Buy land (increase assets) decrease in cash Statement of cash flows tells about the companys ability to pay, meet financial obligations, and cash inflows LEARN RATIOS We are given the income statements, the balance sheet and the additional activities and well have to put it together on exam Other problem is on stockholders equity...
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- Fall '11
- Cash Flow Statement