Académique Documents
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PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
Expand its
operations.
Replace
needed assets.
CLASSIFICATIONS OF THE
STATEMENT OF CASH FLOWS
Cash
Equivalents
Cash
Currency
CLASSIFICATIONS OF THE
STATEMENT OF CASH FLOWS
Operating
Activities
Investing
Activities
Financing
Activities
Operating Activities
Cash received
from revenues
CASH INFLOWS
Investing Activities
Sale of operational assets
Sale of investments
Collections of loans
Financing Activities
Issuance of stock
Issuance of bonds
and notes
Business
Cash paid for
expenses
Purchase of operational
assets
Purchase of investments
Loans to others
Payment of dividends
Repurchase of stock
Repayment of debt
CASH OUTFLOWS
12-5
Indirect Method
Reports the
cash effects of
each operating
activity
Starts with
accrual net
income and
converts to
cash basis
Cash
Flows
from
Operating
Activities
12-7
Outflows
Cash paid for:
Purchase of property, plant and
equipment
Purchase of investments in
securities
Cash
Flows
from
Investing
Activities
12-8
Outflows
Cash paid for:
Repayment of principal to
creditors (excluding interest,
which is an operating activity)
Repurchasing stock from owners
Dividends to owners
Cash
Flows
from
Financing
Activities
12-9
12-10
Net
Income
+ Losses and
- Gains
Cash Flows
from Operating
Activities:
Indirect Method
+ Noncash
expenses such as
depreciation and
amortization.
12-11
Current
Assets
Current
Liabilities
Gains
Losses
12-15
12-16
12-17
END OF CHAPTER 12
12-18