资源描述
,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 16,The Statement of Cash Flows,Purposes of the Statement of Cash Flows,Lists inflows and outflows of cash and cash equivalents by category,Explains the change in cash during the period,Required to be prepared by business entities in China as from January 1,1998,Purposes of the Statement of Cash Flows,The statement helps users to assess,the companys ability to generate positive cash flows in future periods,the companys ability to meet its obligations and to pay dividends,the companys need for external financing,reasons for differences between the amount of net income and the related net cash flow from operating activities,both the cash and non-cash aspects of the companys investment and financing transactions for the period,causes of the change in the amount of cash and cash equivalents,between the beginning and the end of the accounting period,Classification of Cash Flows,The Statement of Cash Flows must include the following three sections:,Cash Flows from,Operating,Activities,Cash Flows from,Investing,Activities,Cash Flows from,Financing,Activities,Cash Flows from Operating Activities,CASH RECEIPTS CASH PAYMENTS,cash receipts from the,sale of goods and the,rendering of services,receipts of rental income,receipts of output value,added tax and refunds of,value added tax,receipts of other tax and,levy refunds other than,value added tax,cash payments for goods and,services acquired,cash payments for operating,leases,cash payments to and on,behalf of employees,payments of value added tax,payments of income tax,payments of other tax and,levy other than value added,tax and income tax,Cash Flows from Investing Activities,CASH RECEIPTS CASH PAYMENTS,cash receipts from return of,investments,cash receipts from,distribution of dividends or,assets,cash receipts from,distribution of dividends or,profits,cash receipts from bond,interest income,net cash receipts from the,sale of fixed assets,intangible assets and other,long-term assets,cash payments to acquire fixed,assets,intangible assets and,other long-term assets,cash payments to acquire,equity investments,cash payments to acquire debt,investments,Cash Flows from Financing Activities,CASH RECEIPTS CASH PAYMENTS,cash proceeds from,issuing stocks,cash proceeds from,issuing bonds,cash receipts from,borrowings,cash repayments of amounts,borrowed,cash payments for costs arising,on any financing activities,cash payments for distribution of,dividends or profits,cash payments of interest,expenses,cash payments for finance leases,cash payments for the reduction,of registered capital,Format of the Statement of Cash Flows,Approaches to Preparing a Statement of Cash Flows,Two Formats for Reporting Operating Activities,Reports the cash effects of each operating activity by obtaining the information from cash journals,Direct Method,Starts with accrual net income on the income statement and then converts it to cash basis by examining the changes during the period in all of balance sheet accounts except for cash,Indirect Method,Reporting Cash Flows from Operating Activities in Direct Method An Illustration,Cash Received from Customers,Net sales 600 000 000,Less:Increase in accounts receivable,3 000 000,Cash received from customers,597 000 000,Reporting Cash Flows from Operating Activities in Direct Method An Illustration,Cash Paid for Purchases of Merchandise,Cost of goods sold 300 000 000,Add:Increase in inventory,1 000 000,Net purchases 301 000 000,Less:Increase in accounts payable,to suppliers 1 500 000,Cash payments for purchases of merchandise,299 500 000,Reporting Cash Flows from Operating Activities in Direct Method An Illustration,Cash Payments for Expense,Operating expenses(including depreciation)140 000 000,Less:Noncash expenses(depreciation),4 000 000,Subtotal 136 000 000,Add:Increase in short-term prepayments 300 000,Decrease in accrued liabilities,600 000,900 000,Cash payments for operating expenses,136 900 000,Reporting Cash Flows from Operating Activities in Direct Method An Illustration,Cash Payments for taxes,Income taxes expense 97 250 000,Add:Decrease in related accrued liability,200 000,Income taxes paid,97 450 000,Reporting Cash Flows from Operating Activities in Direct Method A Summary,Cash flows from operating activities:,Cash received from customers 597 000 000,Cash paid to suppliers and employees (436 400 000),Income taxes paid,(97 450 000),Cash disbursed for operating activities (533 850 000),Net cash flow from operating activities,63 150 000,Cash Flows from Investing Activities,Purchases and Sales of Securities,Purchases of marketable securities (6 500 000),Proceeds from sales of marketable securities 4 000 000,Interest and Dividends Received,Interest revenue 600 000,Add:Decrease in accrued interest receivable,100 000,Interest received,700 000,Cash Flows from Investing Activities,Loans Made and Collected,Loans made to borrowers (1 700 000),Collections on loans 1 200 000,Cash Paid to Acquire Plant Assets,
展开阅读全文