Statement of Cash Flows Flashcards
What items are included in operating activities on the Statement of Cash Flows?
Cash received from Customers- Interest & Dividends- Trading Securities. Cash paid to Vendors- Suppliers- Interest- Taxes- Trading Securities
What items are included in investing activities on a Statement of Cash Flows?
Cash received: Sale of PP&E- Sale of Investments- Loan Principle. Cash paid: Loans- Acquisitions- AFS or HTM Securities- Taxes- Trading Securities
What items are included in Financing Activities in a Statement of Cash Flows?
Cash received: Issuance of Stock- Issuance of Debt. Cash paid: Dividends
What is the direct method for a Statement of Cash Flows?
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
What is the Indirect Method for a Statement of Cash Flows?
Starts with Net Income. Adjusts for changes in accounts like A/R- A/P- Inventory and non-cash revenues- expenses- gains- losses