Chapter F14 Power notes Statement of cash flows Learning Objectives 1. Purpose of the Statement of Cash Flows 2. Reporting Cash Flows 3. Statement of cash Flows- The Indirect Method 4. Statement of cash Flows- The Direct Method 5. Financial Analysis and Interpretation c14 c14-1
C14 - 1 Learning Objectives Power Notes 1. Purpose of the Statement of Cash Flows 2. Reporting Cash Flows 3. Statement of Cash Flows – The Indirect Method 4. Statement of Cash Flows – The Direct Method 5. Financial Analysis and Interpretation Chapter F14 C14 Statement of Cash Flows
Chapter F14 Power notes Statement of cash flows Slide #f Power Note Topics 3· Cash F| ow Basics 20· Statement of cash flows〓 Two Methods 31.Changes in Current Accounts 34. Statement of cash flows- Indirect Method 39. Statement of Cash Flows- Direct Method 62· Free Cash flov Note: To select a topic, type the slide and press Enter c14-2
C14 - 2 • Cash Flow Basics • Statement of Cash Flows – Two Methods • Changes in Current Accounts • Statement of Cash Flows – Indirect Method • Statement of Cash Flows – Direct Method • Free Cash Flow Slide # Power Note Topics 3 20 31 34 39 62 Note: To select a topic, type the slide # and press Enter. Chapter F14 Power Notes Statement of Cash Flows
Reporting Cash Flows The statement of cash flows reports a firm's major cash inflows and outflows for a period cash flows are reported by three types of activities. 1. Operating activities -transactions that affect net income 2. Investing activities transactions that affect noncurrent assets 3. Financing activities- transactions that affect equity and debt of the entity. c14-3
C14 - 3 Reporting Cash Flows 1. Operating activities – transactions that affect net income. 2. Investing activities – transactions that affect noncurrent assets. 3. Financing activities – transactions that affect equity and debt of the entity. The statement of cash flows reports a firm’s major cash inflows and outflows for a period. Cash flows are reported by three types of activities
Cash Flows Increases in Cash Decreases in Cash Cash c14-4
C14 - 4 Cash Flows Increases in Cash Decreases in Cash Cash
Cash Flows Increases in Cash Decreases in Cash Operating (receipts from revenues) Cash c14-5
C14 - 5 Cash Flows Increases in Cash (receipts from revenues) Decreases in Cash Operating Cash