tailieunhanh - Lecture Financial reporting and analysis (6/e) - Chapter 17: Statement of cash flows

Chapter 17 - Statement of cash flows. After studying this chapter you will be able to understand: The major sources and uses of cash-operating, investing, and financing; why accrual net income and operating cash flows differ, and the factors that explain this difference; the difference between the direct and indirect methods of determining cash flow from operations;. | Statement of Cash Flows Revsine/Collins/Johnson/Mittelstaedt/Soffer: Chapter 17 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education Learning objectives The major sources and uses of cash—operating, investing, and financing. Why accrual net income and operating cash flows differ, and the factors that explain this difference. The difference between the direct and indirect methods of determining cash flow from operations. How to prepare a statement of cash flows from comparative balance sheet data, an income statement, and other financial information. 17- Learning objectives Concluded Why changes in balance sheet accounts over a year may not reconcile to the corresponding changes included in the statement of cash flows. How operating cash flows can be distorted. Differences between reporting interest and dividends received and interest and dividends paid on statement of cash flows under IFRS rules vs. . GAAP. 17- Why cash flows are important Accrual earnings may not always provide a reliable measure of enterprise performance and health. Accrual accounting relies on subjective judgments that may introduce measurement error and uncertainty into reported earnings. One-time write-offs and restructuring charges can reduce the quality of reported earnings. Management can readily manipulate accrual income. For these reasons, analysts scrutinize a firm’s cash flows—not just its accrual earnings—to evaluate performance and creditworthiness. 17- Statement format Result from events or transactions that enter into the determination of net income; ., the cash-basis revenues and expenses of a company. Operating cash flows Result from the purchase or sale of productive assets like plant and equipment, marketable securities, and from acquisitions and divestitures. Investing cash flows Result when a company sells its own stocks or bonds, pays dividends or buys back . | Statement of Cash Flows Revsine/Collins/Johnson/Mittelstaedt/Soffer: Chapter 17 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education Learning objectives The major sources and uses of cash—operating, investing, and financing. Why accrual net income and operating cash flows differ, and the factors that explain this difference. The difference between the direct and indirect methods of determining cash flow from operations. How to prepare a statement of cash flows from comparative balance sheet data, an income statement, and other financial information. 17- Learning objectives Concluded Why changes in balance sheet accounts over a year may not reconcile to the corresponding changes included in the statement of cash flows. How operating cash flows can be distorted. Differences between reporting interest and dividends received and interest and dividends paid on statement of cash flows .

• Tài chính doanh nghiệp
• Financial reporting
• Financial information
• Financial statement analysis
• Statement of cash flows
• Cash flows
• Statement format