tailieunhanh - Lecture Managerial accounting - Chapter 14: Statement of cash flows

This chapter explains how to classify transactions as operating, investing, or financing activities, and it explains how to create a statement of cash flows. The indirect method of determining the net cash provided by operating activities is illustrated within the chapter and the direct method is demonstrated in the appendix. | Statement of Cash Flows Chapter 14 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14: Statement of Cash Flows This chapter explains how to classify transactions as operating, investing, or financing activities, and it explains how to create a statement of cash flows. The indirect method of determining the net cash provided by operating activities is illustrated within the chapter and the direct method is demonstrated in the appendix. Purpose of the Statement of Cash Flows Are cash flows sufficient to support ongoing operations? Can we pay debts? Can we pay dividends? Why is there a difference between net income and net cash flow? Will the company have to borrow money to make needed investments? The statement of cash flows can be used to answer crucial questions such as: Is the company generating sufficient positive cash flows from its ongoing operations to remain viable? Will the company be able to repay its debts? Will the company .