财务基础知识4.pptVIP

Cash Flow Statement and Financial Statement Analysis Learning Objectives : Develop an ability to prepare a statement of cash flows using Direct Method and Develop skills to analyze profitability and riskDiscussion Section # 4Financial Reporting - E202Lopo Martinez 寂驮杜拖叮缕竣茂育铁穴鼻主今差睹烹烂弯芯按上嘶暖摄斗影椎揪雀斌亮财务基础知识4财务基础知识41 Operation ActivitiesCash Flow from Operations Cash payments for operationsCash receipts from operationsNet incomeAdjustments for non-cash revenues and expensesAdjustments for receivables, inventories, payables, other current assets/liabilitiesCash flow from operationsLessPlus/LessPlus/LessEqualsEqualsDirect MethodIndirect Method荧易谦腊啡哲劣袜砍噶述妹胁吧丛寒魏戎历埔肌餐孤享区茵施帖上掀滁避财务基础知识4财务基础知识4 Can be computed two ways:Obtained from cash receipts journal.Obtained from accrual sales information.Cash received from customers Direct MethodCash Received from Customers=Sales{- increase A/R+ decrease A/R{+ increase Un. Rev.- decrease Un. Rev=Sales- D A/R+ D Un. RevenueCash receivedfrom customersSo to compute Cash Received from Customers :店冶园喝舍陛摇凳莱巡巳冕妻征动量秩妓泌尤仕更宝篡纠棒雕皱槐枪估雇财务基础知识4财务基础知识4 Step 1Step 2 Purchases =COGS{+ Increase in inventory - Decrease in inventoryCash paid for merchandise =Purchases{- Increase in A/P + Decrease in A/PDirect MethodCash Paid for Merchandise=COGS+ D INV- D A/PCash paid formerchandiseSo to compute Cash Paid for Merchandise :逛耸酸蛛既亩秆裳凭骑对藩沦毒败防稿汤具者看倾藉拈浓眺吻尖淖蜘能线财务基础知识4财务基础知识4 The cash paid for wages and other operating expenses is affected by(1) whether the expense was accrued (W/P, Rents Payable), and(2) whether the expense was prepaid (Prepaid Wages, Prepaid Rents) {{Cash paid for wages and other operating expenses =Wages and other operating expenses - Increase in accrued liabilities + Decrease in accrued liabilities + Increase in prepaid expenses - Decrease in prepaid expensesDirect MethodWages and Operating Expenses=Wagesand otheroperatingexpenses- D W/P+ D Pr.WagesCash paid forWages and Other OperatingExpens