ppt09 Statement of cash flows 会计英语（第四版） 教学文稿.ppt

Lesson 9;Purpose of the Statement of Cash Flows;3;Classification of Cash Flows;Outflows to: Suppliers of merchandise and services. Employees. Lenders for interest. Governments for taxes.;Cash and Cash Equivalents;The operating cash flows section can be prepared using either the direct method or the indirect method.;Let’s look at the Direct Method for preparing the Statement of Cash Flows.;Accrual basis revenue includes sales that did not result in cash inflows. Can be computed as:;+;Revenue, Cash basis $788,000;Now that we understand the process, let’s look at some simplified formulas for computing direct method cash flows.;Direct MethodInterest and Dividends Received;Direct MethodCash Paid for Merchandise;Direct MethodCash Paid for Merchandise;Direct MethodCash Paid for Merchandise;Direct MethodCash Payments for Expenses;Indirect Method;Use this table when adjusting Net Income to Operating Cash Flows.;Managing Cash Flows;Increase collection of accounts receivables. Keep inventory low. Delay payment of liabilities. Plan timing of major expenditures. Invest idle cash.;Cash Budgeting;Cash Budgeting;End of lesson 9