文档介绍：5 The Statement of Cash Flows
Accounting School · Zhongnan University of Economics & Law
ntermediate Accounting
I
中级会计学
1. Conceptual overview and uses of the Statement of Cash Flows
Intermediate Accounting 5 The Statement of Cash Flows
A statement of cash flows is a financial statement of pany that shows the cash inflows, cash outflows, change in cash from its operating, investing, and financing activities during an accounting period, in a manner that reconciles pany's beginning and ending cash balances.
Uses of Statement of Cash Flows
Intermediate Accounting 5 The Statement of Cash Flows
The statement of cash flows helps users to assess--
pany’s ability to generate positive future cash flows.
pany’s ability to meet its obligations and pay dividends.
pany’s need for external financing.
The reasons for differences between pany’ e and associated cash receipts and payments.
Both the cash and noncash aspects of pany’s investing and financing transactions.
2. Structure of the Statement of Cash Flows
Three categories of cash flows
(1) Cash flows from operating activities.
(2) Cash flows from investing activities.
(3) Cash flows from financing activities.
Intermediate Accounting 5 The Statement of Cash Flows
Cash Flows from Operating Activities
Operating activities include all transactions and other events that are not investing and financing activities. Operating activities include transactions involving acquiring, selling, and delivering goods for sale, as well as providing services.
Cash receipts from the sale of goods or services and collections of accounts receivable are typical cash inflows from operating activities.
Cash payments to suppliers for inventory and on account, for wages, and for taxes are examples of cash outflows from operating activities.
Intermediate Accounting 5 The Statement of Cash Flows
Cash Flows from Investing Activities
The Cash Flows From Investing Activities section includes all the cash inflows and outflows involved i