PowerPoint - Ch.3

Other income statement revenues expenses net income

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Unformatted text preview: ends Declared Equity Ending Retained Earnings Balance Sheet Statement of Cash Flows 3-48 Assets = Liabilities + Stockholders’ Equity Contributed Capital Retained Earnings Change = Cash from Operating Activities in + Cash from Investing Activities Cash + Cash from Financing Activities Financial Statements are inter-related with each other Income Statement Revenues – Expenses = Net Income Beginning Retained Earnings Statement of + Net Income Stockholders’ - Dividends Declared Equity Ending Retained Earnings Statement of Cash Flows 3-49 Assets = Liabilities + Stockholders’ Equity Cash Balance Sheet Contributed Capital Retained Earnings Change = Cash from Operating Activities in + Cash from Investing Activities Cash + Cash from Financing Activities Income Statement 3-50 Statement of Stockholders’ Equity The net income ($21,800) comes from the The Income Statement we just prepared. Income 3-51 Ch.1 (see p. 6) called it “Statement of Retained Earnings” Balance Sheet 3-52 Focus on Cash Flows Direct Direct approach to approach to preparing preparing operating operating cash flows. cash flows. For Exam, know For Exam, know tthe 3 categories he 3 categories and what types and what types off items are o items are ffound in each ound in each category. category. 3-53 Operating activities Cash received: Customers Interest and div idends on investments Cash paid: S uppliers Employees Interest on debt obligations Income taxes Cash Flows from Operating Activities Investing Activities Purchase of property, plant or equipment Purchase of other long-term assets S of property, plant or equipment ale S of other long-term assets ale Cash Flows from Investing Activities Financing Activities Issuance of long-term debt Issuance of contributed capital Dividends paid Repurchase of long-term debt Repurchase of contributed capital Cash Flows from Financing Activities Net increase or (decrease) in cash Beginning balance in cash account Ending balance in cash account Effect on Cash Flows + + Total + + Total + + Total End of Chapter 03 3-54...
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This note was uploaded on 10/03/2013 for the course ACC 230 taught by Professor Auerbach,m during the Fall '08 term at CSU Dominguez Hills.

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