Statement of cash flows

Statement of cash flows - List in orders listed above Net...

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Cash inflows and outflows From operations Operation outflows – payroll, accounts payable, inventory From investing activities Cash inflows/outflows from financing activities - stocks and bonds Cash flow statements – Over 95% use the indirect method (accrual), rest use Direct method (cash basis) Operating Activities Inflows – receipts from customers, cash dividends received, interest from borrowers Outflows – Salaries, payments (accounts payable), taxes and fines, interest to lenders. Investing Activities Inflows – Selling long term productive assets, selling equity investments, collecting principal on loans Outflows – purchase long term assts, purchase equity investments, purchase debt investments Financing Activities Inflows – own equity securities, issuing bonds and notes, issuing short/long term liabilities Outflows – dividends, treasury stock, repaying cash loans, paying owners’ withdrawals
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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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Statement of cash flows - List in orders listed above Net...

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