Lecture Financial accounting (7/e): Chapter 13 - Robert Libby, Patricia A. Libby, Daniel G. Short

Statement of Cash Flows Chapter 13 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 McGraw­Hill/Irwin Copyright © 2011 by The McGraw­Hill Companies, Inc. All rights reserved. Classifications of the Statement of Cash Flows Operating Activities Investing Activities Financing Activities Cash inflows and outflows directly related to earnings from normal operations. Cash inflows and outflows related to the acquisition or sale of productive facilities and investments in the securities of other companies. Cash inflows and outflows related to external sources of financing (owners and creditors) for the enterprise. 13­2 CASH INFLOWS Operating Activities Cash received from revenues 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 13­3 NATIONAL BEVERAGE CORP. Consolidated Statement of Cash Flows Year Ended April 30, 2009 Cash flows from operating activities: Net income $ Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Changes in assetsand liabilities: Accounts receivable Inventory Prepaid expense Accounts payable Accrued expenses Net cash provided by operating activities Cash flows for investing activities: Purchasesof property, plant and equipment Proceedsfrom disposal of property, plant & equipment Purchase of short-term investments Proceedsfrom short-term investments Net cash used by investing activities Cash flows from financing activities: Purchase of treasury stock Proceedsfrom issuance of stock Net cash used in financing activities Net increase (decrease) in cash & cash equivalents Cash & cash equivalentsat beginning of period Cash & cash equivalentsat end of period $ 24,742 8,891 (4,549) (858) 6,457 (1,798) 2,604 35,489 (6,658) 167 (109,450) 112,450 (3,491) (305) 950 645 32,643 51,497 84,140 This ending cash balance should agree with the balance sheet.. 13­4 Direct Method vs. Indirect Method Two Formats for Reporting Operating Activities Direct Method Reports the cash effects of each operating activity Indirect Method Starts with accrual net income and converts to cash basis Note that no matter which format is used, the same amount of net cash flows from operating activities is generated. 13­5 ... - tailieumienphi.vn