statementofcashflows-collegeofbusiness--Statementof.pptVIP

403MSBASOCF.ppt Statement of Cash Flows Links Balance Sheet and Income Statement elements to change in cash position. Integral part of “holy trinity” of financial statements … shows the ability of the firm to generate cash given normal assumptions like continuity, stability etc. “Undoes” some accrual accounting adjustments underlying the income statement. Presents cash flows logically organized by source or type of activity generating the cash flows. Statement of Cash Flows Two ways to prepare: Direct method: Start with cash collected from customers and cash paid for operating activities. A