西方财务相关资料

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Chapter 15,Statement Of Cash Flows,Purpose of the statement of cash flows,To provide information about the cash receipts and cash payments of an entity during a period,To provide information about the investing and financing activities of an entity during a period,With the help of the statement of cash flows we can get some important information about the problem listed below:,Where did the cash come from?,What was the cash used for?,What was the chang in the cash balance?,Cash equivalents,Highly liquid short-term investments,such as Treasury bill,money market funds,and commercial paper.For purpose of preparing a statement of cash flows, money held in cash equivalents is still viewed as “cash.”,To qualify as a cash equivalent,an investment must be very safe,have a very stable market value,and mature within 90 days of the date of acquisition.,Classification of cash flows,Investing,Cash inflows,From Sale of property，plant，and equipment,From sale of debt or equity securities of other entities，,From collection of principal on loans to other entities，,Cash outflows,To purchase property，plant，and equipment,To purchase debt or equity securities of other entities,To make loans to another entity,Financing,Cash inflows,From sale of equity securities,From issuance Of debt(bonds and notes),Cash out flows,TO Shareholders as dividends,TO redeem longterm debt or reacquire capital stock,Note: Receipts and payments of interest are operating activities.,Receipts of dividends are operating activities.,Payments of dividends are financing activities .,Operating,Cash inflows,From sale Of goods or services,From returns on loans(interest) and on equity,securities(dividends),Cash outflows,TO suppliers for inventory,TO employees for services,TO government for taxes，,T0 lenders for interest，,TO others for expenses，,Preparation of the statement,The source of information,comparative balance sheets,current income statement,selected transaction data,Major steps,Determine the change in cash,Determine cash provided by operations,Determine cash from investing and financing activities,Illustration (textbook),Determine cash provided by operations,Accrual basis,Cash basis,Net income,Earned revenues,Incurred expenses,Cash provided,by operations,Eliminate noncash revenues,Eliminate noncash expenses,Differences between net income and net cash flow from operating activities,Noncash,expense,Timing differences,Nonoperating,gains and losses,1.,Noncash expenses:that reduce net income but do not require any cash outlay during the current period.,Depreciation expense,Amortization of intangible assets,Depletion of natural resources,Amortization of bond discount,2.,Timing difference :revenue and expenses may be recognized in a different accounting period from the related cash flows.,Changes in accounts receivable,changes in inventory,changes in prepaid expense,changes in accounts payable,changes in accrued expenses payable,3.,Nonoperating gains and losses:according its definition, nonoperating gains and losses do not affect operating activities.however,these gain and losses do enter into the determination of net income.Therefore,in converting net income to net cash flow from operating activities,we,add back any nonoperating losses,and,deduct any nonoperating gains,included in net income.,Nonoperating,gains and losses include gains and losses from sales of investments,plant assets,and discontinued operations (which relate to investing activities);and gains and losses on early retirement of debt(which relate to financing activities).,Two methods are used to adjust the net income to cash provided by operating activities,Direct approach,Indirect approach,Direct method:A method of reporting net cash flow from operating activities by listing specific types of cash inflows and outflows.,Indirect method:A format of reporting net cash flow from operating activities that reconciles this figure with the amount of net income shown in the income statement.,The indirect method:the adjustments to net income are summarized in the following diagram:,Net income,add: depreciation,decrease in accounts receivable,decrease in inventories,decrease in prepaid expenses,increase in accounts payable,increase in accrued expense payable,increase in deferred income taxes payable,Nonoperating losses deducted in computing net income,deduct: increase in accounts receivable,increase in inventories,increase in prepaid expenses,decrease in accounts payable,decrease in accrued expense payable,Nonoperating gains included in net income,Net cash flow from operating activities,Cash flows from investing activities,Purchases and sales of securities,loans made and collected,cash paid to acquire plant assets,proceeds from sales of plant assets,Cash flows from financing activities,Shot-term borrowing activities,proceeds from issuing bonds payable and capital stock and repayment of debt,cash dividends paid to stockholders,Illustration (textbook),