经管学会网盘光华方向专业中会ch.pptx

Statement of Cash FlowsChapter 13Intermediate Accounting14th EditionKieso, Weygandt, and Warfield Prepared by Coby Harmon, University of California, Santa BarbaraLearning ObjectivesDescribe the purpose of the statement of cash flows.Identify the major classifications of cash flows.Differentiate between net income and net cash flows from operating activities.Contrast the direct and indirect methods of calculating net cash flow from operating activities.Determine net cash flows from investing and financing activities.Prepare a statement of cash flows.Identify sources of information for a statement of cash flows.Discuss special problems in preparing a statement of cash flows.Explain the use of a worksheet in preparing a statement of cash flows.Statement of Cash Flows (SCF) . . . is a report listing cash inflows and outflows by category.. . . explains the change in cash during the period.. . . is required by SFAS No. 95Cash Flow Reportingthe Trend Toward Cash FlowsIncreased Business Risk-- Growing bankruptcy rate in the 70’s and 80’s.-- The problem of uneven cash flows for small companies.-- Cash flow information helps investors avoid losses from business failures.Cash Flow Reportingthe Trend Toward Cash FlowsPrevious Funds Statements-- Statement of Changes in Financial Position (APB Opinion No. 19)Cash Basis or Working Capital BasisDifferences between Cash and Accrual Accounting-- GAAP is increasingly complex. Cash flow information is important in the short run.( )Operating Necessary Operating Debt Cash and Capital ServiceReceipts Expenditures Payments-+Cash Flow Reportingthe Usefulness of Cash FlowsFree cash flowFinancial flexibility-- the ability to use cash flows to meet unexpected needs and opportunities.Statement of Cash FlowsPurposeThe Statement helps users assess . . .a firm’s ability to generate cash.a firm’s ability to meet its obligations.the reasons for differences between income and associated cash flows.the effect of