handout for class 11

handout for class 11 - c. Step 3: d. Step 4: 1 Handout #10...

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Handout #10 for Bus321-Intermediate Accounting II Professor: Yasheng Chen Notes for BUS321 Class 11: Statement of Cash Flows (1) Learning objectives: 1. Understand the definition of cash and cash equivalents 2. Identify major types of cash flows in a business. 3. Prepare a statement of cash flows a. Know how to use direct & indirect methods of calculating net cash flow from operating activities b. Understand the effects of various transactions on the cash flow statement. Key learning points: 1. Definition of cash and cash equivalent 2. Usefulness of the Statement of Cash Flows 3. Major types of cash flows a. b. c. 4. Significant noncash transactions 5. Preparing the Operating Section of SCF a. Indirect method i. Three types of adjustment: 1. 2. 3. b. Direct method Major items of cash receipts and payment: 1. 2. 3. 4. 6. Four steps to prepare a complete SCF a. Step 1: b. Step 2:
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Unformatted text preview: c. Step 3: d. Step 4: 1 Handout #10 for Bus321-Intermediate Accounting II Professor: Yasheng Chen 7. effects of various transactions on the cash flow statement: a. Change of account receivable with bad debt write-off b. Determining bad debt expenses c. Chang of inventory with purchase on account d. Change in long-term assets (Land, Building, Equipment, Investment) i. Financing ii. Disposal iii. Accumulated Amortization decrease iv. Loan to other companies v. Long-term equity investment e. Interest/dividend expenses and interest revenue f. Dividend payout / Dividend payable 2 Handout #10 for Bus321-Intermediate Accounting II Professor: Yasheng Chen g. Lease payment h. Future income tax expenses / benefits i. Debt Redemption Gain/Loss 8. Interpret and analyze cash flow statement 3...
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This note was uploaded on 03/15/2012 for the course BUS 303 taught by Professor Brown during the Spring '11 term at Simon Fraser.

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handout for class 11 - c. Step 3: d. Step 4: 1 Handout #10...

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