西方财务15-课件.pptxVIP

Chapter 15;Purpose of the statement of cash flows;With the help of the statement of cash flows we can get some important information about the problem listed below:;Cash equivalents;Classification of cash flows; ; ;Preparation of the statement;Major steps;Illustration (textbook);Determine cash provided by operations;Differences between net income and net cash flow from operating activities;1.Noncash expenses:that reduce net income but do not require any cash outlay during the current period.;2.Timing difference :revenue and expenses may be recognized in a different accounting period from the related cash flows.;3.Nonoperating gains and losses:according its definition, nonoperating gains and losses do not affect operating activities.however,these gain and losses do enter into the determination of net income.Therefore,in converting net income to net cash flow from operating activities,we add back any nonoperating losses and deduct any nonoperating gains included in net income.;Two methods are used to adjust the net income to cash provided by operating activities ; ;The indirect method:the adjustments to net income are summarized in the following diagram:;Cash flows from investing activities;Cash flows from financing activities;Illustration (textbook);