corporate financial reporting
DESCRIPTION
Cash Flow Statement. CORPORATE FINANCIAL REPORTING. C ASH F LOW S TATEMENT. Operating activitiesxxxx Investing activitiesxxxx Financing activities xxxx Increase (decrease) in cashxxxx Cash, beginning of the year xxx Cash, end of the year xxxx. - PowerPoint PPT PresentationTRANSCRIPT
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CORPORATE FINANCIAL REPORTING
Cash Flow Statement
Long-Lived Assets
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CASH FLOW STATEMENTOperating activities xxxx
Investing activities xxxx
Financing activities xxxx
Increase (decrease) in cash xxxxCash, beginning of the year xxxCash, end of the year xxxx
2Cash Flow Statement
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CASH FLOW STATEMENTOperating activities normal day-to-day income producing activities (including buying/selling Trading Securities)
Investing activities acquiring/disposing of non-current assets (including buying/selling Securities Available For Sale) lending and being repaid the principle
Financing activities borrowing and repaying the principle amount borrowed all cash transactions with shareholders 3Cash Flow Statement
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CASH FLOW STATEMENT
Companies don’t really prepare cash flow
statements like we did the first day of class.
They use, as much as possible, a logic based approach.
4Cash Flow Statement
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CASH FLOW STATEMENTSuppose you saw the following under ASSET on a company’s balance sheet:
(in $ 000) 2010 2009
Land 10,000 4,000
and under LIABILITIES there were noliabilities for a land purchase.
What would you surmise happened?5Cash Flow Statement
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CASH FLOW STATEMENTSuppose you saw the following under ASSETS on a company’s balance sheet: (in $ 000)
2010 2009 Land 10,000 4,000
and under LIABILITIES there was: 2010 2009
Mortgage payable for land 5,000 -0-
What would you surmise happened?6Cash Flow Statement
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CASH FLOW STATEMENTSuppose you saw the following under ASSETS
on a company’s balance sheet: (in $ 000) 2010 2009
Land 10,000 24,000
and there is no loss from land impairment on the 2020 income statement.
What would you surmise happened?7Cash Flow Statement
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CASH FLOW STATEMENTSuppose you saw the following under ASSETS on a company’s balance sheet: (in $ 000)
2010 2009Land 10,000 24,000Nothing about a receivable from sale of land.
And on the 2010 income statement you sawGain on land sale 5,000 -
What would you surmise happened?8Cash Flow Statement
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CASH FLOW STATEMENTSuppose you saw the following under ASSETS on a company’s balance sheet: (in $ 000)
2010 2009Land 10,000 24,000
And on the 2010 income statement you sawImpairment of land (14,000) -
What would you surmise happened?
9Cash Flow Statement
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CASH FLOW STATEMENTSuppose you saw the following under OWNERS’ EQUITY on a company’s balance sheet: (in $ 000)
2010 2009 Capital stock 10,000 7,000 Paid in surplus 14,000 9,000
What would you surmise happened?
10Cash Flow Statement
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CASH FLOW STATEMENT
For the most part, that is the approach companies take to
prepare cash flow statements.
11Cash Flow Statement
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CASH FLOW STATEMENT
Warning!
Accounting professors love to put cash flow statement problems on
tests.
12Cash Flow Statement
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CASH FLOW STATEMENT
QUESTIONS?
13Cash Flow Statement