Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the cash inflows or the cash receipts of a business and the cash outflows or cash payments for a specific period of time. The cash flow statement also provides information regarding the net cash change that occurred during a period, classifying the activities into three categories those are cash from operating activities, investing, and financing activities. In operating activities, cash affected transactions only recorded. In investing activities, investing transactions are recorded and in financial activities involve cash flows result from changes in long-term liabilities and shareholder’s equity. To prepare: The statement of cash flows for 2017 using the indirect method.
Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the cash inflows or the cash receipts of a business and the cash outflows or cash payments for a specific period of time. The cash flow statement also provides information regarding the net cash change that occurred during a period, classifying the activities into three categories those are cash from operating activities, investing, and financing activities. In operating activities, cash affected transactions only recorded. In investing activities, investing transactions are recorded and in financial activities involve cash flows result from changes in long-term liabilities and shareholder’s equity. To prepare: The statement of cash flows for 2017 using the indirect method.
Solution Summary: The author explains how to prepare the statement of cash flows for the year ended December 31, 2017 using the indirect method.
Cash Flow Statement is a fundamental financial statement that renders valuable information regarding the cash inflows or the cash receipts of a business and the cash outflows or cash payments for a specific period of time.
The cash flow statement also provides information regarding the net cash change that occurred during a period, classifying the activities into three categories those are cash from operating activities, investing, and financing activities.
In operating activities, cash affected transactions only recorded. In investing activities, investing transactions are recorded and in financial activities involve cash flows result from changes in long-term liabilities and shareholder’s equity.
To prepare: The statement of cash flows for 2017 using the indirect method.
(b)
To determine
Free cash flow:
Free cash flow describes the net cash provided from operating activities after making required adjustments for dividends and capital expenditures. In other words, it is the cash flow arrived after making payment for capital expenditures and dividend payments.
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning