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
- Operating activities:
- Relating to the firm’s current assets and current liabilities
- Investing activities
- Relating to the firm non-current assets
- Asset that company expect to hold for more than 1 fiscal year
- Relating to the firm non-current assets
- Financing activities
- Relating to the firm’s non-current liabilities and equity
- Operating activities:
- Link between CF and BS: Each transaction affect each balance sheet account
- Transactions for which timing of revenue or expense recognition differs from receipt or payment of cash reflected in change in balance sheet accounts
- Accounts receivable increase/ decrease when sales increase/cash collection increase
- Accounts payable increase or decrease when purchase increase/ payment increase
- Transactions for which timing of revenue or expense recognition differs from receipt or payment of cash reflected in change in balance sheet accounts
