会计学—企业决策的基础—14版—13.pptVIP

;Learning Objective;Provides information about the cash receipts and cash payments of a business entity during the accounting period.;Learning Objective;The Statement of Cash Flows must include the following three sections: Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities;Learning Objective;+;Learning Objective;Cash Flows from Investing Activities;+;Cash Equivalents;Learning Objective;The operating cash flows section can be prepared using either the direct method or the indirect method.;Accrual basis revenue includes sales that did not result in cash inflows. Can be computed as:;+;Cash Received from Customers = $870,000;Let’s look at some simplified formulas for computing direct method cash flows.;Direct MethodInterest and Dividends Received;Step 1 Step 2;How much did Martin Co. pay for inventory in 2007? a. $900,000 b. $923,000 c. $947,000 d. $877,000;After deducting depreciation and other noncash expenses, the cash paid for expenses is affected by (1) whether the expense was prepaid, and (2) whether the expense was accrued. ;Now, let’s prepare a direct method Statement of Cash Flows for Martin Co.;Direct Method;Direct Method;Direct Method;Direct Method;Direct Method;Direct Method;Direct Method;Direct Method;Direct Method;Equipment with a book value of $40,000 was sold for $43,000.;;Learning Objective;Reconciling Net Income withNet Cash Flows;Let’s look at the indirect method that is used by over 97% of all companies.;Learning Objective;Net Income;Use this table when adjusting Net Income to Operating Cash Flows.;Joyce, Inc. has prepared the Balance Sheet as of March 31, 2006, and March 31, 2007. The Income Statement for the year ended 3/31/07 has also been prepared. Joyce needs help preparing the Statement of Cash Flows using the indirect method. ;Indirect Method;Indirect Method;Indirect Method;Indirect Method;With the indirect method, always start with the net income or net loss for