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Cash Flows

Statement of Cash Flows

QuestionAnswer
3 Types of Cash Flows Operating, Finance, Investing
Operating Activities Casual relationship to the income statement including interest income and expense
Investing Activities Generally result from the purchase or sale of non-current assets and current "held to maturity" investments
Financing Activities Non operating debt and equity, bank borrowing/payments. (not interest)
Indirect Method Begins with net income, subtracts all expenses and contra assets and then adds all of the assets and liabilities that involved cash changing hands
Direct Method How we do it in class.
Created by: 563877211