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Business Finance Healthcare Finance: An Introduction to Accounting and Financial Management

The three primary categories that are reflected on the statement. Introduction: Cash flow statement represents the uses and sources of cash in three categories viz. cash flow from financing activity, cash flow from investing activity, cash flow from operating activity. The users of financial statement are able to evaluate the ability of the company for generating revenue and its strategy for continuous operation through financing, investing and operating activities. The three primary categories that are reflected on the statement are financing activities, investing activities and operating activities. The financing activities reflect the cash transaction associated with the repayment of debt or raising money through stock or debt by the business. For instance, purchase of treasury stock , redemption of bonds payable or notes, cash payment for dividend distribution, cash proceeds from issue of capital stock and proceeds from issue of debt such as bonds payable or notes. The investing activities reflect the cash transaction that is associated with investment by the business in long term assets. For instance, cash receipt from sale of investment assets, equipment, building and land and cash outflow due to payment for acquisition of investment, equipment, building and land. Operating activities reflect the cash transaction that is associated with the activities undertaken by business for generating the revenue. For instance cash flow from dividend and interest, sales. Cash outflow due to payment for operating expenses viz. utilities and salaries and purchase of inventory.

The three primary categories that are reflected on the statement. Introduction: Cash flow statement represents the uses and sources of cash in three categories viz. cash flow from financing activity, cash flow from investing activity, cash flow from operating activity. The users of financial statement are able to evaluate the ability of the company for generating revenue and its strategy for continuous operation through financing, investing and operating activities. The three primary categories that are reflected on the statement are financing activities, investing activities and operating activities. The financing activities reflect the cash transaction associated with the repayment of debt or raising money through stock or debt by the business. For instance, purchase of treasury stock , redemption of bonds payable or notes, cash payment for dividend distribution, cash proceeds from issue of capital stock and proceeds from issue of debt such as bonds payable or notes. The investing activities reflect the cash transaction that is associated with investment by the business in long term assets. For instance, cash receipt from sale of investment assets, equipment, building and land and cash outflow due to payment for acquisition of investment, equipment, building and land. Operating activities reflect the cash transaction that is associated with the activities undertaken by business for generating the revenue. For instance cash flow from dividend and interest, sales. Cash outflow due to payment for operating expenses viz. utilities and salaries and purchase of inventory.

Solution Summary: The author explains the three primary categories that are reflected on the statement: financing activities, investing activities and operating activities.

Healthcare Finance: An Introduction to Accounting and Financial Management

Healthcare Finance: An Introduction to Accounting and Financial Management

6th Edition

ISBN: 9781567937411

Author: Louis C. Gapenski, Kristin L. Reiter

Publisher: Health Administration Press

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Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 4 - Prob. 1.1STQ Ch. 4 - Prob. 1.2STQ Ch. 4 - Prob. 1.3STQ Ch. 4 - Prob. 1.4STQ Ch. 4 - Prob. 2.1STQ Ch. 4 - Prob. 2.2STQ Ch. 4 - Prob. 2.3STQ Ch. 4 - Prob. 2.4STQ Ch. 4 - Prob. 2.5STQ Ch. 4 - Prob. 3.1STQ

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