CP 2 modul (Cash Flow statement)

Question 1

Cash flow statement

Answer 1

Present the actual inflows and outflows in a given reporting period

Question 2

CF statement provides info for:

Answer 2

1. Operating activities
2. Investment activity
3. Financial activity

Question 3

Direct method for operating cash flows

Answer 3

Cash flow from operating activities:
* Cash receipt from customers
* Wages and salaries
* Cash paid to vendors
* Interest Income
* Income before income taxes
* Interest paid
* Income taxes paid
Net cash from operating activities

Question 4

Indirect method for operating cash flows

Answer 4

Net income
Adjustments for:
* Depreciation and amortization
* Provision for losses on accounts receivable
* Gain on sale of facility
* (-) Increase in trade receivable
* (+) Decrease in inventories
* (-) Decrease in trade payables
Net cash from operating activities