chapter 23a notes - Statement of Cashflows Three sections:...

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Statement of Cashflows Three sections: Inflows from the sale of goods and/or services Outflows to suppliers for inventory Outflows to employees Outflows to governments for taxes Outflows to lenders for interest Outflows to others for expenses Inflows from sale of debt or equity of other entities Inflows from collection of principal on loans to other entities Outflows to purchase debt or equity of other entities Outflows to make loans to other entities Inflows from sale of our equity securities Inflows from issuance of our debt instruments Outflows to stockholders as dividends Outflows to redeem debt or repurchase our stock Two formats (each relates to the presentation of "Operating Activities") The Indirect Method Net Income from Income Statement Adjustments for non-cash items Arriving at net income cash basis The Direct Method Revenues "cash basis"
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