G convert cash flows from the indirect to direct method; Flashcards
convert cash flows from the indirect to direct method;
1
Q
From indirect to direct CFO ( +reciepts) (-outflows)
A
Adjust each income statement item for its corresponding balance sheet accounts and to eliminate non cash and non operating transactions
Adjust NI stuff to BS to reflect changes as A = S + LE
2
Q
Noncash transactions
A
Owners Equity or LTL
An Inv or Factivity which does not affect CF
3
Q
Nonoperating transactions
A
Dividend income, P and L of known investments
exchange transfer gain?>?
