管理会计讲义chap015.pptVIP

15-* * The general format for this section of the statement is as shown. It includes those transactions that involve the acquisition or disposal of noncurrent assets. 15-* * The general format for this section of the statement is as shown. It includes those transactions that involve the receipts from or payments to creditors and owners. 15-* * For both financing and investing activities, items on the statement of cash flows should be presented in gross amounts rather than in net amounts. For example, if Macy’s Department Stores purchases $50,000,000 in property during the year and sells other property for $30,000,000, instead of showing the net change of $20,000,000, the company must report the gross amounts of both transactions. ? The gross method of reporting does not extend to operating activities, where debits and credits to an account are netted against each other. 15-* * The net cash provided by operating activities can be computed by either the direct or indirect methods. No matter which format is used, the same amount of net cash provided by operating activities is generated. The direct method reconstructs the income statement on a cash basis from top to bottom. For example, cash collected from customers is used instead of revenue, and payments to suppliers is used instead of cost of sales. The indirect method (also known as the reconciliation method) constructs the operating activities section of the statement of cash flows by starting with net income and adjusting it to a cash basis. Items that do not affect cash flows are removed from net income, thereby showing the reasons why net income differs from net cash provided by operating activities.? The FASB encourages the use of the direct method. However, if the direct method is used it must be accompanied by a supplementary reconciliation of net income with operating cash flows. In other words, the indirect method must also be shown. If a company decides to use the indirect method for determining