Reg - Statement Of Cash Flow

Front 1

The purpose of the SCF is to provide info about the sources of cash and cash equivalents and the uses of cash and cash equivalents , specifically info about:
1.__________ cash flows - the cash effects of the line items that make up the calculation of Net Income and the cash payments resulting form transactions involving securities classified as "Trading Securities"
2. __________ cash flows - the cash effects of noncurrent asset transactions, such as purchases and sales of fixed assets and investments and lending activities
3. __________ cash flows - the cash effects of borrowing and paying back debt, and issuing or repurchasing the equity of the company

Back 1

1. OPERATING CF
2. INVESTING CF
3. FINANCING CF

Front 2

The SCF Reconciles the cash and cash equivalents amount presented on the __________ balance sheet to the cash and cash equivalents amounts presented on the __________ balance sheet.

Back 2

Beginning
Ending

Front 3

Cash equivalent are defined as short-term, liquid investments that are :
1. Quickly convertible into ______ AND
2. So near maturity ( the original maturity date to the investor was within 3 months of the purchase date) that the risk of changes in the value is insignificant.

Back 3

CASH

Front 4

GAAP encourages enterprises to report CF form operating activities using the DIRECT method, by showing major classes of 1._________ cash receipts and disbursements.
A reconciliation of NI to net Cash Flows from operating activities is required to be provided in ________ schedule.

Back 4

OPERATING
a Separate

Front 5

Companies that choose not to use the Direct method are required to report the same amount of net cash flow from oprerating activities indirectly, by adjusting NI to _____________ it to net CF form operating activities.

Back 5

RECONCILE

Front 6

DIRECT METHOD - major classes of cash receipts and disbursements:
I Inflow - 5 items
II Outflow - 5 items

Back 6

I Inflow
1. Cash received from customers
2. Interest received
3. Dividends received
4. Other operating cash receipts such as receipt of insurance proceeds and lawsuit settlements
5. Cash received form the sale of securities classified as Trading securities

II Outflow
1. Cash paid to suppliers and employees
2. Interest paid
3. Income tax paid
4. Cash paid to acquire securities classified as TRADING securities
5. Other operating cash payments