Cash Flow

Front 1

c/f by direct method

Back 1

requires disclosure reconcilation from net income to net c/f from operating activities

Front 2

IFRS. : dividend paid. vs received

Back 2

paid: financing or operating. received: operating or investing

Front 3

direct method operating activity

Back 3

Cash inflow: customer. interest cash out flow: supplier employee. tax government. interest to lender

Front 4

investing activity

Back 4

making a loan: 돈을 빌려 준다 이자를 받으려고

Front 5

indirect operating activity

Back 5

NI. - AR increase ( prepaid) + bad debt increase ( AP. tax payable )

Front 6

net cash used in financing activity

Back 6

1 identify financing activity. 2 netting cash outflow. and cash inflow

Front 7

GAAP : Financing cash outflow

Back 7

to reduce debt principal. CLO

Front 8

LOGIC: bond discount amortization

Back 8

interest expense HIGHER. NI. LOWER by non cash activity. add back to NI

Front 9

amortization of bonds premium

Back 9

1 reduce carrying amount of B/P. 2 reduce. interest expende ( I/E = carrying amount of B/P. × yield rate ) 3 increase NI

Front 10

C/F operating activity - cash paid? to supplier direct method

Back 10

direct method. - use T- account. inventory and A/P

Front 11

direct method. C/F operating activity. cash received? f customer

Back 11

T account. of AR. UNEARNED REVENUE. increase AR = accrual income is higher than cash basis income ; decrease UNEARNED REVENUE accrual income is higher than cash basis income. so accrual income 200k less the difference 8k and 6k =:186 k 2. increase in AR: less cash collected than revenue recorded. cash basis revenue less by 8k. decrease in unearned revenue : the amount earned during the period but is collected in a period less by 6k

Front 12

Cash balance at year end?

Back 12

the loss in sale of the fixed asset already included in c/f not considered seperately

Front 13

C/F. amortization of discount vs premium

Back 13

discount. : add back to NI premium: subtracted from NI

Front 14

C/F supplement disclosure by using indirect method

Back 14

Cash paid for interest and tax. ( not line items such as capital expenditure- investing activity dividend paid - financing activities capital lease payment )

Front 15

net operating cash flow from balance sheet and other information

Back 15

1) net income - increase in AR. + increase in AP ex) $78 -$82 +24=20. 2 ) financing cash flow: proceed f issuance of stock - dividend paid ex) 200 -20

Front 16

Cash use vs working capital ( current asset. current liability)

Back 16

1 ) cash use --- then increase current asset decrease in current liability