西方财务相关(英文版)(24页)报告.ppt

Chapter 15 Statement Of Cash Flows Purpose of the statement of cash flows To provide information about the cash receipts and cash payments of an entity during a period To provide information about the investing and financing activities of an entity during a period With the help of the statement of cash flows we can get some important information about the problem listed below: Where did the cash come from? What was the cash used for? What was the chang in the cash balance? Cash equivalents Highly liquid short-term investments,such as Treasury bill,money market funds,and commercial paper.For purpose of preparing a statement of cash flows, money held in cash equivalents is still viewed as “cash.” To qualify as a cash equivalent,an investment must be very safe,have a very stable market value,and mature within 90 days of the date of acquisition. Classification of cash flows Investing Cash inflows From Sale of property，plant，and equipment． From sale of debt or equity securities of other entities， From collection of principal on loans to other entities， Cash outflows To purchase property，plant，and equipment． To purchase debt or equity securities of other entities． To make loans to another entity． Financing Cash inflows From sale of equity securities． From issuance Of debt(bonds and notes)． Cash out flows TO Shareholders as dividends． TO redeem long—term debt or reacquire capital stock． Operating Cash inflows From sale Of goods or services． From returns on loans(interest) and on equity securities(dividends) Cash outflows TO suppliers for inventory． TO employees for services． TO government for taxes， T0 lenders for interest， TO others for expenses， Preparation of the statement The source of information comparative balance sheets current income statement selected transaction data Major steps Determine the change in cash Illu