Chapter 13 - Statement of cash flows. The following will be discussed in this chapter: Discuss the usefulness and format of the statement of cash flows, prepare a statement of cash flows using the indirect method, analyze the statement of cash flows. | Preview of Chapter 1 Financial Accounting Ninth Edition Weygandt Kimmel Kieso Preview of Chapter 13 Financial Accounting Ninth Edition Weygandt Kimmel Kieso 13 Statement of Cash Flows Learning Objectives After studying this chapter, you should be able to: [1] Indicate the usefulness of the statement of cash flows. [2] Distinguish among operating, investing, and financing activities. [3] Prepare a statement of cash flows using the indirect method. [4] Analyze the statement of cash flows. Provides information to help assess: Entity’s ability to generate future cash flows. Entity’s ability to pay dividends and meet obligations. Reasons for difference between net income and net cash provided (used) by operating activities. Cash investing and financing transactions during the period. Usefulness of the Statement of Cash Flows Usefulness and Format LO 1 13 Statement of Cash Flows Learning Objectives After studying this chapter, you should be able to: [1] Indicate the usefulness of the statement of cash flows. [2] Distinguish among operating, investing, and financing activities. [3] Prepare a statement of cash flows using the indirect method. [4] Analyze the statement of cash flows. Classification of Cash Flows Income Statement Items Operating Activities Changes in Investments and Long-Term Asset Items Investing Activities Changes in Long-Term Liabilities and Stockholders’ Equity Items Financing Activities Usefulness and Format LO 2 Usefulness and Format Classification of Cash Flows Operating activities—Income statement items Cash inflows: From sale of goods or services. From interest received and dividends received. Cash outflows: To suppliers for inventory. To employees for wages. To government for taxes. To lenders for interest. To others for expenses. LO 2 Illustration 13-1 Typical receipt and payment classifications Illustration 13-1 Typical receipt and payment classifications Usefulness and Format Classification of Cash Flows Investing activities—Changes in . | Preview of Chapter 1 Financial Accounting Ninth Edition Weygandt Kimmel Kieso Preview of Chapter 13 Financial Accounting Ninth Edition Weygandt Kimmel Kieso 13 Statement of Cash Flows Learning Objectives After studying this chapter, you should be able to: [1] Indicate the usefulness of the statement of cash flows. [2] Distinguish among operating, investing, and financing activities. [3] Prepare a statement of cash flows using the indirect method. [4] Analyze the statement of cash flows. Provides information to help assess: Entity’s ability to generate future cash flows. Entity’s ability to pay dividends and meet obligations. Reasons for difference between net income and net cash provided (used) by operating activities. Cash investing and financing transactions during the period. Usefulness of the Statement of Cash Flows Usefulness and Format LO 1 13 Statement of Cash Flows Learning Objectives After studying this chapter, you should be able to: [1] Indicate the usefulness of the .
