[经济学]会计学原理-约翰·J·怀尔德版-上海交通大学-15.pptVIP

* Now we can see that East Incorporated’s cash provided from operating activities is one hundred forty thousand dollars. Notice that if we used the direct method, we would use a different format but would get the same answer. * Let’s test this idea by preparing another Statement of Cash Flows for B and G company, but this time, let’s use the indirect method. * Here is a comparative balance sheet for B and G so we can see the changes in each account. * Some additional information that we will need is that net income for the period is one hundred five thousand dollars; forty thousand dollars in cash dividends were paid during the period; fifty thousand dollars of bonds payable were paid with cash; and common stock was issued for thirty-five thousand dollars. Now, we are ready to start the Statement of Cash Flows. * First, we start with the accrual-basis net income. Then, we adjust net income for noncash expenses, gains and losses. Last, we need to adjust net income for the changes in the noncash current assets and current liabilities. * As you can see, depreciation expense is added back to net income. The changes in the noncash current assets and current liability accounts are then added or subtracted as appropriate. If you look back at the direct method for B and G, you will see that it also reported one hundred forty-one thousand dollars as net cash provided by operating activities. * Now, can you complete the investing section? HINT: it is exactly like the one we did earlier! * See, nothing new here! The financing section should be the same as well. * Here is the completed Statement of Cash Flows. The only thing that is different from the first one we completed for this company is the way we arrived at cash provided by operating activities. The rest of the statement is exactly like the first one we did. * Looking at the Statement of Cash Flows provides useful information and can help raise good questions about a company. While each of thes