STATEMENT OF CASH FLOWSWord格式文档下载.docx
《STATEMENT OF CASH FLOWSWord格式文档下载.docx》由会员分享,可在线阅读,更多相关《STATEMENT OF CASH FLOWSWord格式文档下载.docx(13页珍藏版)》请在冰豆网上搜索。
06ADetailedExampleoftheDirectMethod7
07SumminguptheAmountofChangeinCash9
08ComputingCashFlowsfromOperatingActivities9
09ComputingtheCashCollectionsfromCustomers9
10ComputingtheCashPaymentstoSuppliers10
11omputingtheCashPaymentstoEmployees11
Referencedocuments:
13
1.Toexplaintheconceptofthestatementofcashflows.
2.Toclassifyactivitiesaffectingcashflowsasoperating,investingandfinancialactivities.
3.Tousethedirectmethodtomeasurecashflows.
4.Todeterminecashflowsfromincomestatementandbalancesheetaccounts.
5.Tousetheindirectmethodtocalculatecashflowsfromoperations.
6.Toreviewfinancialstatements.
theBalanceSheet,theIncomeStatement,theStatementofowner’sEquity,theStatementofCashFlows
Astatementofcashflowsreportsthecashreceiptsandcashpaymentsofanentityduringaperiod.Itexplainsthecausesforthechangesincashbyprovidinginformationaboutoperating,financingandinvestingactivities.
Astatementofcashflowsisimportantforthefollowingpurposes:
1.Itshowstherelationshipsofnetincometochangesincashbalances.Cashbalancescandeclinedespitepositivenetincomeandviceversa.
2.Itreportspastcashflowsasanaidto:
(1)Predictingfuturecashflows;
(2)Evaluatingmanagement’sgeneratinganduseofcash;
and
(3)Determiningacompany’sabilitytopayinterestanddividendsandtopaydebtswhentheyaredue.
3.Itrevealscommitmentstoassetsthatmayrestrictorexpandfuturecoursesofaction.
Thestatementofcashflowsprovidesexplanationsofchangesincashandcashequivalents(moneymarketfunds,treasurybill,etc.).Itcoverstheperiodoftimebetweentwobalancesheetdatesandexplainswhythebalancesheetitemshavechanged.
01ClassificationofaFirm’sActivitiesAffectingCash
Readersoffinancialstatementswantinformationonafirm’sactivitiesintwoprimaryareas:
a.Operatingmanagementisprimarilyconcernedwithmajorday-to-dayactivitiesthatgeneraterevenuesandexpense(operatingactivities);
b.Financialmanagementislargelyconcernedwithwheretogetcash(financingactivities)andhowtousecash(investingactivities).
1.OperatingActivities(OA):
Tables01-1
2.InvestingActivities(IA)involve
(1)providingandcollectingcashasalenderorasanownerofsecurities;
(2)acquiringanddisposingofplant,property,equipment,andotherlong-termproductiveassets.Tables01-2
3.FinancingActivities(FA).
Financingactivitiesinvolveobtainngresourcesasaborrowerorissuerofsecuritiesandrepayingcreditorsandowners.
Tables01-3
02TwoMethodsofComputingCashFlowsfromOperatingActividies
Twoapproachescanbeusedtocomputethenumberreportedascashflowfromoperatingactivities:
(1)Computingitascollectionslessoperatingdisbursementsiscalledthedirectmethod.
(2)Adjustingtheaccrualnetincometoreflectonlycashoutlaysiscalledindirectmethod.
Notethatthedirectmethodispreferredbecauseitshowsoperatingcashreceiptsandpaymentsinawaythatiseasierforinvestorstounderstand.However,theindirectmethodismorecommon..
03TransactionsAffectingCashFlowsfromAllSources
Thefollowingtableshowsthatusedtransactionsaffectingcashflowsfromallsources.
Tables03-4
04PreparingaStatementofCashFlowsUsingtheDirectMethod
1.Rearrangingthebalancesheetequition:
Assets=Liabilities+Stockholders’Equity
Cash+Non-cashAssets=Liabilities+Stockholders’Equity
Cash=Liabilities+Stockholders’Equity–Non-cashAssets
Anychangeincashmustbeaccompaniedbyachangeinoneormoreitemsontherightside:
△Cash=△Liabilities+△Stockholders’Equity–△Non-cashAssets
Therefore:
Changeincash=Cashinallnon-cashAssets
Or:
Whathappenedtocash=Whyithappened
2.Thestatementofcashflowsfocusesonthechangeinthenon-cashaccountsasawaytoexplainhowandwhythelevelofcashchangedduringagivenperiod.
3.Cashflowsfromoperatingactivities:
(1)Collectionsfromsalestocustomersarealmostalwaysthemajoroperatingactivitythatincreasecash.
(2)Disbursementsforpurchasesofgoodstobesoldandoperatingexpensesarealmostalwaysthemajoroperatingcashoutflows.
(3)Theexcessofcollectionoverdisbursementsisnetcashprovidedbyoperatingactivities.
4.Toobtaincashflowsfrominvestingandfinancingactivities,itisnecessary,iftheinformationregardingthesecashflowsisnotdirectlyavailable,foraccountantstoanalyzechangeinallbalancesheetitemsexceptcash.
(1)Increasesincash(cashinflows)-increasesinliabilitiesorstockholders’equity;
(2)Decreasesincash(cashoutflows)-decreasesinliabilitiesorstockholders’;
increasesinnon-cashassets.
05PreparingaStatementofCashFlowsUsingtheIndirectMethod
Theindirectmethodofcomputingcashflowsfromoperatingactivitiesreconcilesnetincometothenetcashprovidedbyoperatingactivities.
(1)Depreciationisaddedbacktonetincomebecauseitisanon-cashitem.
(2)Adddecreasesinnon-cashcurrentassets.
(3)Addincreasesincurrentliabilities.
(4)Deductincreasesinnon-cashcurrentassets.
(5)Deductdecreasesincurrentliabilities.
06ADetailedExampleoftheDirectMethod
Table06-5
MIKECOMPANY
BalanceSheet(inthousands)
December31,20×
3
Table06-6
IncomeStatement(inthousands)
FortheYearEndedDecember31,20×
Table06-7
StatementofCashFlows(inthousands)
07SumminguptheAmountofChangeinCash
Thefirststepinpreparingthestatementofcashflowsistocomputetheamountofthechangeincashfromthebeginningtotheendoftheperiod.Thiscalculationisoftenincludedatthebottomofthestatement.Thenetchangeisaddedtothebeginningbalancetocomputetheendingbalance.
Inthisexample,cashdecreaseby$18000.Operatingactivitiescontribute$138000cashduringtheperiod.Investingactivitiesuse$554000cashduringtheperiod.Financingactivitiescontribute$398000cashduringtheperiod.
Theexampleshowshowafirmmayhavepositivenetincomebutstillhaveadeclineincash.
08ComputingCashFlowsfromOperatingActivities
Collectionsfromsalestocustomersareusuallythelargestsourceofoperatingcashinflows.Disbursementsforpurchasesofgoodstobesoldandoperatingexpenseareusuallythelargestsourcesofoperatingcashoutflows.Operatingcashinflowsminusoperatingcashoutflowsequalsthenetcashprovidedby(orusedby)operatingactivities.
Accountantsoftencomputecollectionsandotheroperatingcashflowitemsfromfiguresintheincomestatement.
Manyaccountantsusethebalancesheetalongwithadditionalinformationandfamiliaritywithcausesofcertainchangesinbalancesheetamountstocomputethecashflowitems.
However,manyaccountingsystemsarenotcapableofprovidingdetailedinformationneededforthatmethod.
09ComputingtheCashCollectionsfromCustomers
Inourexample,$36000wascollectedfromcustomers.Thatamountisdeterminedasfollow:
Table09-8
NotethattheincreaseinA/Rmeansthatsales>
collections.
10ComputingtheCashPaymentstoSuppliers
Thedifferencebetweencostofgoodssoldandcashpaymentstosupplierscanbedeterminedbylookingatinventoryandaccountspayable.
Table10-10
Table10-11
TheeffectsofinventoryandaccountspayableonTable10-10andTable10-11canbecombinedintoonecalculationasfollows:
Table10-12
11ComputingtheCashPaymentstoEmployees
Cashpaymentstoemployeescanbedeterminedbyexaminingwagesandsalariespayable.
Table11-13
Or
Noticeinthisexamplethatbothinterestpayableandincometaxespayablewerezeroatthebeginningandendoftheperiod.
Thismeansthattheentireamountsofinterestexpenseandincometaxexpensewereincurredandpaidduringtheperiod,sothecashflowsaretheamountsoftheexpense,$8000and$40000,respectively.
1.ACCOUNTINGENGLISH.ChangXun立信出版社
2.ACCOUNTINGENGLISGJiuhongYu中国人民大学出版社
3.INTERNATIONALACCOUNTINGENGLISG.RogerPegum英国JUM大学