statement of cashflows Flashcards
two methods
direct and indirect(reconciliation)
financing section includes
sale of stock/reaquire stock issuance of debt(bonds or notes) for this comp to stockholders as div to redeem lt debt sale of equity securities
operating activities- items on income statement
from customers dividends from investment interest rev int expense payment of income taxes to employees-payroll to suppliers goods, services
or from customers interest or div income sale of trading investments to suppliers, employees, gov for interest or other operational exp
investing activities-reports cash inflows and outflows that relate to investment in and disposal of non cash assets.
sale/purchase ppe
sale/purchase of debt or equity securities of other entities
collection of loan principal
direct method how
to derive net cash provided by operating activities using the direct method each item in the income statement is adjusted from accrued to cash
Direct method has 4 sections under operating
collection from customers (rev, ar,unearned rev)
cash payments to suppliers (cogs, inv,ap)
cash payments for operating expense(op exp, prepaid,op expense payable)
cash payments for other types of expenses