Statement of Cash Flows Flashcards
What items are included in operating activities on the Statement of Cash Flows?
Cash received from Customers- Interest & Dividends- Trading Securities
Cash paid to Vendors- Suppliers- Interest- Taxes- Trading Securities
What items are included in investing activities on a Statement of Cash Flows?
Cash received: Sale of PP&E- Sale of Investments- Loan Principle
Cash paid: Loans- Acquisitions- AFS or HTM Securities- Taxes- Trading Securities
What items are included in Financing Activities in a Statement of Cash Flows?
Cash received: Issuance of Stock- Issuance of Debt
Cash paid: Dividends
What is the direct method for a Statement of Cash Flows?
Starts with Income from Continuing Operations
Adjusts for changes in accounts like A/R- A/P- Inventory and non-cash revenues- expenses- gains- losses
If used- the Indirect Method must also be shown
What is the Indirect Method for a Statement of Cash Flows?
Starts with Net Income
Adjusts for changes in accounts like A/R- A/P- Inventory and non-cash revenues- expenses- gains- losses
Basic EPS
(NI - Prefer div)/WACSO
What do you report with a simple capital structure?
Basic EPS only
WACSO
Shares out. at beg of pd \+ shares sold (time weighted) (Shares reacq) (time weighted) \+ stick div and splits (retroactive) (Reverse stock splits) (retroactive)
What do you report with a complex
Capital structure?
Basic and diluted EPS
Diluted EPS
Inc avail to CSh (NI - pref div) + int on dilutive securities/WACSO, assuming all dilutive securities are concerted to CS
Compute additional shares for options and similar interests
Shares issued
((# of shares*exercise price)/avg mkt price))
Add this to WACSO
Dilutive securities
Decreases EPS
Anti dilutive securities
Increases EPS
Statement of CF
Net cash provided by (used in) op act + Net cash provided by (used in) invest act - Net cash provided by (used in) fin act +/- --------------- Net increase (decrease) in cash \+ cash & equivalents at beg of yr --------------- Cash & equivalent at end of yr