MGMT 20000 Chapter Notes - Chapter 11: Cash Flow Statement, Current Liability, Cash Flow

• School: Purdue University
• Department: Management
• Course: MGMT 20000
• Professor: Kimberly Fatten

Document Summary

Part a formatting the statement of cash flows. Learning objective 1 classify cash transactions as operating, investing, or financing. Activities: cash receipts and cash payments for transactions relating to revenue and expense activities. Investing activities: cash transactions involving the purchase and sale of long-term assets and current investments. Inflows and outflows of cash resulting from the external financing of a business. Information sources for preparing the statement of cash flows. Income statement: provides important information in determining cash flows from operating activities. Balance sheets: look at the change in asset, liability, and stockholders" equity account from the end of the last period to the end of this period. Significant investing and financing activities that do not affect cash. Reported after the cash flow statement or in a note to the financial statements. Differ in presentation format for operating activities. Both methods report investing, financing, and noncash activities identically.