Intermediate Accounting Chapter5.pptVIP

Examining the Balance Sheet and Statement of Cash Flows Chapter 5 Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet – “Current Assets” Balance Sheet – “Current Assets” Balance Sheet – “Current Assets” Balance Sheet – “Current Assets” Current Assets: Cash $ 346 Accounts receivable 500 Less allowance for doubtful accounts 25 475 Inventory 812 Total current assets $1,633 Balance Sheet – “Current Assets” Balance Sheet – “Current Assets” Payment of cash, that is recorded as an asset because service or benefit will be received in the future. Balance Sheet – “Noncurrent Assets” Balance Sheet – “Noncurrent Assets” Balance Sheet – “Noncurrent Assets” Balance Sheet – “Noncurrent Assets” Balance Sheet – “Noncurrent Assets” Balance Sheet – “Noncurrent Assets” Balance Sheet – “Noncurrent Assets” Balance Sheet – “Exercise” Balance Sheet – “Noncurrent Assets” Balance Sheet Balance Sheet Balance Sheet – “Exercise” Balance Sheet Balance Sheet Classification Exercise Balance Sheet - Format Additional Information Reported Techniques of Disclosure The Statement of Cash Flows The Statement of Cash Flows The Statement of Cash Flows The Statement of Cash Flows The Statement of Cash Flows The Statement of Cash Flows The Statement of Cash Flows Additional Information Reported Usefulness of the Statement of Cash Flows Usefulness of the Statement of Cash Flows Usefulness of the Statement of Cash Flows Usefulness of the Statement of Cash Flows Three different activities: Operating, Content and Format LO 7 Identify the content of the statement of cash flows. Investing, Financing Illustration 5-24 Content and Format Operating Cash inflows and outflows from operations. Investing Cash inflows and outflows from non-current assets. Financing Cash inflows and outflows from non-current liabilities and equity. The statement’s value is that it helps users evaluate liquidity, solvency, and financial flexibility.