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Flashcards in statement of cashflows Deck (6)
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1

two methods

direct and indirect(reconciliation)

2

financing section includes

sale of stock/reaquire stock
issuance of debt(bonds or notes) for this comp
to stockholders as div
to redeem lt debt
sale of equity securities

3

operating activities- items on income statement

from customers
dividends from investment
interest rev
int expense
payment of income taxes
to employees-payroll
to suppliers goods, services

or
from customers
interest or div income
sale of trading investments
to suppliers, employees, gov
for interest or other operational exp

4

investing activities-reports cash inflows and outflows that relate to investment in and disposal of non cash assets.

sale/purchase ppe
sale/purchase of debt or equity securities of other entities
collection of loan principal

5

direct method how

to derive net cash provided by operating activities using the direct method each item in the income statement is adjusted from accrued to cash

6

Direct method has 4 sections under operating

collection from customers (rev, ar,unearned rev)
cash payments to suppliers (cogs, inv,ap)
cash payments for operating expense(op exp, prepaid,op expense payable)
cash payments for other types of expenses