Statement of cash flows
Statement of Cash Flows
(A) Cash Flow Info & Decision Making: Cash is King
(B) Statement of Cash Flows
Statement of Cash Flow for the period 1/1/xx to 1/1/xx+1
Cash flow from operations (CFO) +/- x x
Cash flow from investing (CFI) +/- y y
Cash flow from financing (CFF) +/- z z
Equals change in cash account = change of cash balance
+ Beginning of period cash + Beginning cash
= Ending cash balance = Ending cash
(C) Analyzing Cash Flows from Operations
1. non-cash items
2. depreciation
3. deferred tax
4. interest amortization
5. accrual items, such as wages payable
(D) Methods for preparing SCFs
1. Direct Method
2. Indirect Method
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