Cash Flow Statement Chapter 21 Cash Flow Statement
- Slides: 10
Cash Flow Statement Chapter 21
Cash Flow Statement Objectives: To provide information about: cash receipts, cash payments, and the net change in cash from: operating, investing, and financing activities
Questions the Statement of Cash Flow Answers Where did the money come from? Where did it go? What was the change in the cash balance What caused the change in the cash balance
Format of the Cash Flow Statement Operating Activities Investing Activities Financing Activities Non-cash Activities
Operating Activities Cash received from customers Cash paid for e. g. , purchase of inventory Operating expenses Taxes interest
Operating Activities ALERT Some investing or financing cash flows are classified as operating activities. E. g. , Receipts of investment revenue (interest and dividends) and Payments of interest to lenders are classified as operating activities because these items are reported in the income statement.
Investing Activities Cash received from sale of assets, e. g. : Land Investment in stocks or bonds Cash spent on the purchase of assets: Building Stocks or bonds Property
Financing Activities Cash received from Issuance of stocks or bonds Other borrowings Cash paid to retire debts or Repurchase stock Pay dividends
Non-cash Activities Example: Acquisition of assets in exchange for stock
Comparative Cash Flow Examples A B C Operations (50, 000) 50, 000 Investing (100, 000) 50, 000 (60, 000) Financing 110, 000 (140, 000) 40, 000 Net CF (40, 000) 30, 000 Beg. Cash 50, 000 End. Cash 10, 000 80, 000
- Salaries paid in cash flow statement
- A cash-flow statement gives you important feedback on your:
- Prepaid expense in cash flow statement
- Cash flow statement leaving cert
- Ipsas cash flow statement
- Increase in debtors in cash flow statement
- Indirect cash flow statement
- Net cash flow from investing activities
- Indirect method of cash flow
- Cost of goods sold in cash flow statement
- Cash flow statement format grade 12