tailieunhanh - Ebook Accounting - Tool for business decision making (4th edition): Part 2

(BQ) Part 2 book "Accounting - Tool for business decision making" has contents: Statement of cash flows, managerial accounting, job order costing, process costing, budgetary control and responsibility accounting, budgetary planning, incremental analysis and capital budgeting,.and other contents. | 8/31/10 12:21 PM Page 622 12 chapter STATEMENT OF CASH FLOWS ✓ ● the navigator ● Scan Study Objectives ● Read Feature Story ● Scan Preview After studying this chapter, you should be able to: ● Read Text and Answer Do it! p. 627 p. 636 p. 640 1 Indicate the usefulness of the statement of cash flows. ● Work Using the Decision Toolkit ● Review Summary of Study Objectives 3 Explain the impact of the product life cycle on a company’s cash flows. ● Work Comprehensive Do it! p. 656 4 Prepare a statement of cash flows using the indirect method. ● Answer Self-Test Questions 5 Use the statement of cash flows to evaluate a company. ● Complete Assignments ● Go to WileyPLUS for practice and tutorials ● 622 Read A Look at IFRS p. 680 study objectives 2 Distinguish among operating, investing, and financing activities. 8/31/10 12:21 PM Page 623 feature story In today’s environment, companies must be ready to should find new investment proj- respond to changes quickly in order to survive and ects that would bring higher returns, thrive. This requires that they manage their cash very or return some of the cash to stockholders. carefully. One company that managed cash success- Finally, Microsoft announced a plan to return cash fully in its early years was Microsoft. During those years, to stockholders, by paying a special one-time $32 bil- the company paid much of its payroll with stock op- lion dividend. This special dividend was so large that, tions (rights to purchase company stock in the future according to the . Commerce Department, it at a given price) instead of cash. This strategy conserved cash and turned more than a thousand of its employees into millionaires during the company’s first 20 years G OT CAS H? of business. caused total personal income in the United States to rise by in one month—the largest increase ever recorded by the agency. (It also .