| A | B |
|---|
| Statement of Cash Flows | explains diff in $ from 1 period to the next; info about in- & outflows during period |
| Statement of Cash Flows 2 | determine net change in cash from OIF activities |
| Examples of cash equivalents | money mkt, commercial paper w/maturity of =/<3 mo, govt securities w/maturities of =/<3 mo |
| Operating Activities | $ receipts; $ pmt associated w/transactions that generate R&E resulting in NI |
| Investing Activities | $ receipts; $ pmts associated w/acquiring & disposing of LT capital/financial assets |
| Financing Activities | $ receipts and $ pmts associated w/raising capital, repaying, pmt of divs |
| Operating Activities Direct Method | Reports cash receipts and cash payments |
| Operating Activities Indirect Method | Start w/NI; adj. to reflect $ basis; Same amt as direct method |
| Preparing SCF - OA section | + dep/amort; + losses; - gains; changes in A/R, Inv, Prepay, A/P, Accrued L |
| Preparing SCF - OA when adding to NI | - A/R; - Inv; - Ppd Exp; + A/P; + Taxes/P |
| Preparing SCF - OA when subtracting from NI | + A/R; + Inventory; + Ppd Exp; - A/P; - Taxes/P |
