Statement of Cash Flows

Question 1

What items are included in Operating Activities on the Statement of Cash Flow?

Answer 1

Cash received from customers
Interest & Dividends
Trading Securities
Cash paid to Vendors
Suppliers
Interest
Taxes
Trading Securities

Question 2

What items are included in investing activities on a Statement of Cash Flow?

Answer 2

Cash received: Sale of PP&E, Sale of Investments, Loan Principle

Cash Paid: Loans, Acquisitions, AFS or HTM Securities, Taxes, Trading Securities

Question 3

What items are included in Financing Activities in the Statement of Cash Flow?

Answer 3

Cash received: Issuance of Stock, Issuance of Debt

Cash paid: Dividends

Question 4

What is the direct method for a Statement of Cash Flow?

Answer 4

Starts with Income from Cont. Operations. Adjusts for changes in accounts like A/R, A/P, Inventory and non-cash revenues, expenses, gains, losses. If used, the Indirect Method must also be shown.

Question 5

What is the Indirect Method for Statement of Cash Flow?

Answer 5

Starts with Net Income, adjusts for changes in accounts like A/R, A/P, Inventory and non-cash revenues, expenses, gains, losses.