Statement of Cash Flows

Question 2

What items are included in operating activities on the Statement of Cash Flows?

Answer 2

Cash received from Customers- Interest & Dividends- Trading Securities

Cash paid to Vendors- Suppliers- Interest- Taxes- Trading Securities

Question 3

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

Answer 3

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

Cash paid: Loans- Acquisitions- AFS or HTM Securities- Taxes- Trading Securities

Question 4

What items are included in Financing Activities in a Statement of Cash Flows?

Answer 4

Cash received: Issuance of Stock- Issuance of Debt

Cash paid: Dividends

Question 5

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

Answer 5

Starts with Income from Continuing 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 6

What is the Indirect Method for a Statement of Cash Flows?

Answer 6

Starts with Net Income

Adjusts for changes in accounts like A/R- A/P- Inventory and non-cash revenues- expenses- gains- losses

Question 7

Basic EPS

Answer 7

(NI - Prefer div)/WACSO

Question 8

What do you report with a simple capital structure?

Answer 8

Basic EPS only

Question 9

WACSO

Answer 9

Shares out. at beg of pd
\+ shares sold (time weighted)
(Shares reacq) (time weighted)
\+ stick div and splits (retroactive)
(Reverse stock splits) (retroactive)

Question 10

What do you report with a complex

Capital structure?

Answer 10

Basic and diluted EPS

Question 11

Diluted EPS

Answer 11

Inc avail to CSh (NI - pref div) + int on dilutive securities/WACSO, assuming all dilutive securities are concerted to CS

Question 12

Compute additional shares for options and similar interests

Answer 12

Shares issued
((# of shares*exercise price)/avg mkt price))

Add this to WACSO

Question 13

Dilutive securities

Answer 13

Decreases EPS

Question 14

Anti dilutive securities

Answer 14

Increases EPS

Question 15

Statement of CF

Answer 15

Net cash provided by (used in) op act +
Net cash provided by (used in) invest act -
Net cash provided by (used in) fin act +/-
---------------
Net increase (decrease) in cash
\+ cash & equivalents at beg of yr
---------------
Cash & equivalent at end of yr