FS

Represents the cash a company generates after cash outflows to support operations and maintain its capital assets. Available once firm covered capital expenditures Often used …

Major source and use of cash Cash flow analysis begins with evaluation of the firms’ sources and uses of cash from Operating Investing Financing Operating …

Combination of the income statement and a statement of cash flows under the indirect method  Adjust each income statement item for its corresponding balance sheet …

Some points to remember CFO is calculated differently but the result is the same under both methods CFI and CFF is identical under both methods …

Cash flow statement  Reconcile beginning and ending balance of cash over accounting period  Link between CF and IS: Change in cash balance is results of  …

Both method  Are permitted under US GAAP and IFRS  Most firm use indirect method  Representation of cash flows from investing and financing activities is exactly …

IFRS US GAAP Interest and dividends received is operating activities, may be operating or investing activities. Interest and dividends received is operating activities  Dividends paid …

Not reported in the cash flow statement as not generate inflows or outflow of cash  Must be disclosed in either footnote or supplemental schedule Analyst …

Cash flow from operating activities (CFO) (42) Inflows and outflows of cash resulting from transactions that affect a firm’s net income Cash flow from investing …