tailieunhanh - Lecture Managerial accounting - Chapter 13: Statement of cash flows

After studying this chapter you will be able to understand: Categorizing cash flows, cash flows provided by operating activities: the indirect method, cash flows provided by investing & financing activities, constructing and interpreting the statement of cash flows. | CHAPTER © jsnyderdesign / iStockphoto 13 STATEMENT OF CASH FLOWS WHAT’S UP WITH C&C’S CASH? Increases in sales and income, yet they still have to borrow cash to make it through the year Time lag between payments for raw materials and collections from customers The timing difference is causing C&C to run out of cash CATEGORIZING CASH FLOWS Unit 13 1 . Unit Unit © Tomwang112 / iStockphoto Unit NET INCOME VS. CASH FLOWS / = Net Income Income Statement Cash Flow Statement of Cash Flows SOURCES OF CASH Generate cash receipts Collections from customers Cash proceeds from sale of building Payment of salaries Gain on sale of investment Χ Χ USES OF CASH Require cash disbursements Payment of interest on a loan Purchase of inventory on account Payment of salaries Declaring dividends Χ Χ CASH FLOWS ARE GENERATED BY INVESTING ACTIVITIES Cash flows from activities related to investing in assets other than current operating assets OPERATING ACTIVITIES Cash flows from . | CHAPTER © jsnyderdesign / iStockphoto 13 STATEMENT OF CASH FLOWS WHAT’S UP WITH C&C’S CASH? Increases in sales and income, yet they still have to borrow cash to make it through the year Time lag between payments for raw materials and collections from customers The timing difference is causing C&C to run out of cash CATEGORIZING CASH FLOWS Unit 13 1 . Unit Unit © Tomwang112 / iStockphoto Unit NET INCOME VS. CASH FLOWS / = Net Income Income Statement Cash Flow Statement of Cash Flows SOURCES OF CASH Generate cash receipts Collections from customers Cash proceeds from sale of building Payment of salaries Gain on sale of investment Χ Χ USES OF CASH Require cash disbursements Payment of interest on a loan Purchase of inventory on account Payment of salaries Declaring dividends Χ Χ CASH FLOWS ARE GENERATED BY INVESTING ACTIVITIES Cash flows from activities related to investing in assets other than current operating assets OPERATING ACTIVITIES Cash flows from activities that accomplish the organization’s business purposes FINANCING ACTIVITIES Cash flows from activities related to external funding sources such as debt and equity C&C’S STATEMENT OF CASH FLOWS Cash provided by operating activities Cash provided by financing activities Cash provided by investing activities EXAMPLES OF SOURCES AND USES OF CASH CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: THE INDIRECT METHOD Unit Unit Unit © Tomwang112 / iStockphoto Unit 13 2 . TWO METHODS TO REPORT OPERATING CASH FLOWS Start with net income and add items to reconcile to cash flows provided by operating activities Most commonly used method in practice Indirect Method Direct Method Report specific operating activities that generate and use cash Method preferred by FASB, but rarely used in practice INDIRECT METHOD TREATMENT OF NON-CASH EXPENSES Cash Flow from Operations $100,000 (30,000) $70,000 Depreciation expense is subtracted from revenue to calculate net income. But .

• Kế toán - Kiểm toán
• Managerial accounting
• Lecture Managerial accounting
• Process costing
• Standard costing systems
• Statement of cash flows
• Cash flows
• Managerial accounting for managers
• Profitability analysis
• Decision making
• Operations management majors
• Nonmanufacturing costs
• Classifications of costs
• Kế toán quản trị
• Managerial accounting information
• General cost classifi cations
• Product costs
• Accounting information
• Managerial decision
• Process management
• Financial statement
• Cost concepts
• Managerial accounting basics
• Managerial cost
• Period costs
• Lecture Financial and managerial accounting
• Financial statements
• Managerial decisions
• Financial accounting
• Dynamic business environment
• Reporting manufacturing activities
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Relevant costing
• Accounting activities
• Business activities
• Income statement
• Accounting cycle
• Accounting for merchandising operations
• Merchandising operations
• Capital budgeting decisions
• Time value of money
• Income taxes
• After tax cost