会计学Chapter13课程.pptVIP

Chapter 13 Statement of Cash Flows Understanding the Business Learning Objectives Classifications of the SCF (Statement of Cash Flows) SCF does not include transactions not included in BS and IS Simply provides information on the cash flow effects of those transactions Breaks down cash from/for three principal business activities: Operating, Investing, Financing Cash Flows from Operating Activities (CFO) Cash Flows from Investing Activities (CFI) Cash Flows from Financing Activities (CFF) Classifications of the SCF Cash paid for/ received from interests and dividends Classifications of the SCF 1. Operating activities (CFO) Cash flows related to earnings from normal operations Cash received/paid for goods and services Typically involve current asset/liability and income accounts 2. Investing activities (CFI) Cash flows related to the acquisition/sale of productive facilities and investments in the securities of other companies Cash received/paid for PPE and other long-term assets Typically involve noncurrent assets 3. Financing activities (CFF) Cash flows related to external sources of financing Cash received for issuing debt or stock, cash paid for dividends, repaying debt or buying back stocks Typically involve noncurrent liabs and equity accounts Classifications of the SCF Classify each of the following as operating activities (O), investing activities (I), financing activities (F) or not on cash flow statement (NA). Relationships to the Balance Sheet and the Income Statement Information needed to prepare a statement of cash flows: Comparative Balance Sheets. Income Statement. Additional details concerning selected accounts. Relationships to the Balance Sheet and the Income Statement Let’s look at how to derive CF changes from other Financial Statements Assets = Liabilities + SE Cash + Noncash Assets = Liabilities +SE Cash = Liabilities + SE – Noncash Assets ?Cash = ?L + ?SE - ?Noncash Assets ?Cash = ?CL + ? NCL + ?SE - ?