tailieunhanh - Lecture Accounting: Tools for business decision making (5th edition): Chapter 12 - Kimmel, Weygandt, Kieso

Chapter 12 - Statement of cash flows. After completing this unit, you should be able to: Discuss the usefulness and format of the statement of cash flows, prepare a statement of cash flows using the indirect method, use the statement of cash flows to evaluate a company. | STATEMENT OF CASH FLOWS Accounting, Fifth Edition 12 After studying this chapter, you should be able to: Indicate the usefulness of the statement of cash flows. Distinguish among operating, investing, and financing activities. Explain the impact of the product life cycle on a company’s cash flows. Prepare a statement of cash flows using the indirect method. Use the statement of cash flows to evaluate a company. Learning Objectives Preview of Chapter 12 Accounting Fifth Edition Kimmel Weygandt Kieso LO 1 Indicate the usefulness of the statement of cash flows. Provides information to help assess: Entity’s ability to generate future cash flows. Entity’s ability to pay dividends and obligations. Reasons for difference between net income and net cash provided (used) by operating activities. Cash investing and financing transactions during the period. Usefulness and Format Usefulness of the Statement of Cash Flows Classification of Cash Flows LO 2 Distinguish among operating, investing, and financing activities. Usefulness and Format Income Statement Items Operating Activities Changes in Investments and Long-Term Asset Investing Activities Changes in Long-Term Liabilities and Stockholders’ Equity Financing Activities Usefulness and Format LO 2 Distinguish among operating, investing, and financing activities. Illustration 12-1 Typical receipt and payment classifications Classification of Cash Flows Usefulness and Format LO 2 Distinguish among operating, investing, and financing activities. Illustration 12-1 Typical receipt and payment classifications Classification of Cash Flows Direct issuance of common stock to purchase assets. Conversion of bonds into common stock. Direct issuance of debt to purchase assets. Exchanges of plant assets. Companies report noncash activities in either a separate schedule (bottom of the statement) or separate note to the financial statements. Usefulness and Format LO 2 Distinguish among operating, investing, and financing activities. . | STATEMENT OF CASH FLOWS Accounting, Fifth Edition 12 After studying this chapter, you should be able to: Indicate the usefulness of the statement of cash flows. Distinguish among operating, investing, and financing activities. Explain the impact of the product life cycle on a company’s cash flows. Prepare a statement of cash flows using the indirect method. Use the statement of cash flows to evaluate a company. Learning Objectives Preview of Chapter 12 Accounting Fifth Edition Kimmel Weygandt Kieso LO 1 Indicate the usefulness of the statement of cash flows. Provides information to help assess: Entity’s ability to generate future cash flows. Entity’s ability to pay dividends and obligations. Reasons for difference between net income and net cash provided (used) by operating activities. Cash investing and financing transactions during the period. Usefulness and Format Usefulness of the Statement of Cash Flows Classification of Cash Flows LO 2 Distinguish among operating, investing, and