University:
Widener University
Course:
COMPSCI 345 | Practice and Applications of Data Management
Academic year:

2023
Views:

158

Pages:

2
Author:

Madalynn Hodges

Statement of Cash Flows RECITATION AGENDA – SESSION 5 STATEMENT OF CASH FLOWS • SCF Checklist (cheat sheet material!) • SCF Examples • Other Business Statement of Cash Flows SCF – CHECKLIST (HINT: WRITE ON YOUR CHEAT SHEET!) • Two types of cash flow statements – Direct & Indirect • 3 sections – operating, investing, financing • Indirect statement of cash flow starts with Net Income • Only operating section of the cash flow statements differs between direct and indirect statements • Important transactions that neither increase nor decrease Cash are excluded from the face of the statement, e.g., purchase of land in exchange for a long-term note payable, declaration of dividends • Remember to: • Add back depreciation & amortization in Operating Section of indirect cash flow statement • Add (subtract) losses (gains) from Operating Section of indirect cash flow statement • Counterintuitive things • In the Operating section are interest & dividends received (income) and interest payments (expense) • In the Financing section are dividend payments • CashBB and CashEB appear at bottom of SCF