Slide
13-1
Chapter
13
Statement of
Cash Flows
Financial Accounting, IFRS Edition
Weygandt Kimmel Kieso
Slide
13-2
Study Objectives
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.
Slide
13-3
Statement of Cash Flows
The Statement of
Cash Flows:
Usefulness and
Format
Preparing the
Statement of Cash
Flows—Indirect
Method
Usefulness
Classifications
Step 1: Operating
activities
Significant non-cash
activities
Step 2: Investing and
financing activities
Format
Step 3: Net change
in cash
Preparation
Indirect and direct
methods
Slide
13-4
Using Cash Flows to
Evaluate a Company
Free cash flow
Usefulness and Format
Usefulness of the Statement of Cash Flows
Provides information to help assess:
1. Entity’s ability to generate future cash flows.
2. Entity’s ability to pay dividends and obligations.
3. Reasons for difference between net income and net cash
provided (used) by operating activities.
4. Cash investing and financing transactions during the
period.
Slide
13-5
SO 1 Indicate the usefulness of the statement of cash flows.
Usefulness and Format
Classification of Cash Flows
Operating
Activities
Income
Statement
Items
Slide
13-6
Investing
Activities
Generally
Non-Current
Asset Items
Financing
Activities
Generally
Non-Current
Liability and
Equity Items
SO 2 Distinguish among operating, investing, and financing activities.
Classification of Cash Flows
Types of Cash Inflows and Outflows
Slide
13-7
Illustration 13-1
SO 2 Distinguish among operating, investing, and financing activities.
Classification of Cash Flows
Types of Cash Inflows and Outflows
Slide
13-8
Illustration 13-1
SO 2 Distinguish among operating, investing, and financing activities.
Classification of Cash Flows
Types of Cash Inflows and Outflows
IFRS requires that the following amounts be disclosed:
 Cash paid for taxes.
 Cash received and paid from interest and dividends.
Illustration 13-2
Daimler’s statement of
cash flows note
Slide
13-9
SO 2 Distinguish among operating, investing, and financing activities.
Usefulness and Format
Significant Non-Cash Activities
1. Direct issuance of ordinary shares to purchase assets.
2. Conversion of bonds into ordinary shares.
3. Direct issuance of debt to purchase assets.
4. Exchanges of plant assets.
Companies report these activities in either a separate note or
supplementary schedule to the financial statements.
Slide
13-10
SO 2 Distinguish among operating, investing, and financing activities.
Slide
13-11
Usefulness and Format
Format of the Statement of Cash Flows
Order of Presentation:
Direct Method
1. Operating activities.
2. Investing activities.
Indirect Method
3. Financing activities.
The cash flows from operating activities section always
appears first, followed by the investing and financing sections.
Slide
13-12
SO 2 Distinguish among operating, investing, and financing activities.
Format of the Statement of Cash Flows
Illustration 13-3
Slide
13-13
SO 2 Distinguish among operating, investing, and financing activities.
Format of the Statement of Cash Flows
During its first week, Hu Na Company had these
transactions.
Classification
Slide
13-14
1. Issued 100,000 HK$50 par value ordinary shares
for HK$8,000,000 cash.
Financing
2. Borrowed HK$2,000,000 from Castle Bank,
signing a 5-year note bearing 8% interest.
Financing
3. Purchased two semi-trailer trucks for
HK$1,700,000 cash.
Investing
4. Paid employees HK$120,000 for salaries and
wages.
Operating
5. Collected HK$200,000 cash for services provided.
Operating
SO 2 Distinguish among operating, investing, and financing activities.
Usefulness and Format
Preparing the Statement of Cash Flows
Three Sources of Information:
1. Comparative statement of financial position
2. Current income statement
3. Additional information
Slide
13-15
SO 2 Distinguish among operating, investing, and financing activities.
Usefulness and Format
Three Major Steps:
Slide
13-16
Illustration 13-4
SO 2 Distinguish among operating, investing, and financing activities.
Usefulness and Format
Three Major Steps:
Slide
13-17
Illustration 13-4
SO 2 Distinguish among operating, investing, and financing activities.
Usefulness and Format
Indirect and Direct Methods
Companies favor the indirect method for two reasons:
1. Easier and less costly to prepare, and
2. Focuses on the differences between net income and net
cash flow from operating activities.
Slide
13-18
SO 2 Distinguish among operating, investing, and financing activities.
Slide
13-19
Preparing the Statement of Cash Flows
Illustration
Illustration 13-5
Indirect
Method
Slide
13-20
SO 3 Prepare a statement of cash flows using the indirect method.
Preparing
the
Statement
of Cash
Flows
Indirect
Method
Illustration 13-5
Slide
13-21
SO 3 Prepare a statement of cash flows using the indirect method.
Preparing the Statement of Cash Flows
Additional information for 2011:
1. The company declared and paid a $29,000 cash dividend.
2. Issued $110,000 of long-term bonds in direct exchange for land.
3. A building costing $120,000 and equipment costing $25,000 were
purchased for cash.
4. The company sold equipment with a book value of $7,000 (cost
$8,000, less accumulated depreciation $1,000) for $4,000 cash.
5. Issued ordinary shares for $20,000 cash.
6. Depreciation expense was comprised of $6,000 for building and
$3,000 for equipment.
Slide
13-22
SO 3 Prepare a statement of cash flows using the indirect method.
Preparing the Statement of Cash Flows
Step 1: Operating Activities
Indirect
Method
Determine net cash provided/used by operating activities
by converting net income from an accrual basis to a cash
basis.
Common adjustments to Net Income (Loss):
Add back non-cash expenses (depreciation and
amortization expense).
Deduct gains and add losses.
Changes in non-cash current assets and current
liabilities.
Slide
13-23
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Question
Which is an example of a cash flow from an operating
activity?
a. Payment of cash to lenders for interest.
b. Receipt of cash from the sale of shares.
c. Payment of cash dividends to the company’s
shareholders.
d. None of the above.
Slide
13-24
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Depreciation Expense
Although depreciation expense reduces net income, it does not
reduce cash.
Illustration 13-7
Slide
13-25
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Loss on Sale of Equipment
Because companies report as a source of cash in the investing
activities section the actual amount of cash received from the
sale:
Any loss on sale is added to net income in the operating
section.
Any gain on sale is deducted from net income in the
operating section.
Slide
13-26
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Loss on Sale of Equipment
Computer Services’ income statement reports a $3,000 loss on
the sale of equipment (book value $7,000, less $4,000 cash
received from sale of equipment).
Illustration 13-8
Slide
13-27
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Asset Accounts
When the Accounts Receivable balance decreases, cash
receipts are higher than revenue earned under the accrual
basis.
Illustration 13-9
Accounts Receivable
1/1/011
Balance
Revenues
12/31/11 Balance
30,000
507,000
Receipts from customers 517,000
20,000
Therefore, the company adds to net income the amount of the
decrease in accounts receivable.
Slide
13-28
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Asset Accounts
Illustration 13-10
Cash flows from operating activities:
Net income
$
145,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense
9,000
Loss on sale of equipment
3,000
Decrease in accounts receivable
Net cash provided by operating activities
Slide
13-29
10,000
$
167,000
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Asset Accounts
When the Inventory balance increases, the cost of
merchandise purchased exceeds the cost of goods sold.
Merchandise Inventory
1/1/11
Balance
Purchases
12/31/11 Balance
10,000
155,000
Cost of goods sold
150,000
15,000
As a result, cost of goods sold does not reflect cash payments
made for merchandise. The company deducts from net income
this inventory increase.
Slide
13-30
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Asset Accounts
Illustration 13-10
Cash flows from operating activities:
Net income
$
145,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense
9,000
Loss on sale of equipment
3,000
Decrease in accounts receivable
10,000
Increase in inventory
(5,000)
Net cash provided by operating activities
Slide
13-31
$
162,000
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Asset Accounts
When the Prepaid Expense balance increases
 Cash paid for expenses is higher than expenses reported on
an accrual basis.
 Company deducts the decrease from net income to arrive at
net cash provided by operating activities.
If prepaid expenses decrease, reported expenses are higher
than the expenses paid.
Slide
13-32
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Asset Accounts
Illustration 13-10
Cash flows from operating activities:
Net income
$
145,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense
9,000
Loss on sale of equipment
3,000
Decrease in accounts receivable
10,000
Increase in inventory
(5,000)
Increase in prepaid expenses
(4,000)
Net cash provided by operating activities
Slide
13-33
$
158,000
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Liability Accounts
When Accounts Payable increases
 Company received more in goods than it actually paid for.
 Increase is added to net income.
When Income Tax Payable decreases
 Income tax expense was less than the amount of taxes paid
during the period.
 Decrease is subtracted from net income.
Slide
13-34
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Liability Accounts
When Accounts Payable increases
 Company received more in goods than it actually paid for.
 Increase is added to net income.
When Income Tax Payable decreases
 Income tax expense was less than the amount of taxes paid
during the period.
 Decrease is subtracted from net income.
Slide
13-35
SO 3 Prepare a statement of cash flows using the indirect method.
Operating Activities
Changes to Non-Cash Current Liability Accounts
Illustration 13-11
Cash flows from operating activities:
Net income
$
145,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense
9,000
Loss on sale of equipment
3,000
Decrease in accounts receivable
10,000
Increase in inventory
(5,000)
Increase in prepaid expenses
(4,000)
Increase in accounts payable
16,000
Decrease in income taxes payable
(2,000)
Net cash provided by operating activities
Slide
13-36
$
172,000
SO 3 Prepare a statement of cash flows using the indirect method.
Preparing the Statement of Cash Flows
Summary of Conversion to Net
Cash Provided by Operating
Activities—Indirect Method
Slide
13-37
Illustration 13-12
SO 3 Prepare a statement of cash flows using the indirect method.
Step 2: Investing and Financing Activities
From the additional information, the company purchased land of
$110,000 by issuing long-term bonds. This is a significant
noncash investing and financing activity that merits disclosure in
a separate schedule.
Land
1/1/11
Balance
Issued bonds
12/31/11 Balance
20,000
110,000
130,000
Bonds Payable
1/1/11
Slide
13-38
Balance
For land
20,000
110,000
12/31/11 Balance
130,000
SO 3 Prepare a statement of cash flows using the indirect method.
Investing and Financing Activities
Partial statement
Slide
13-39
Illustration 13-14
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of building
Purchase of equipment
Sale of equipment
Net cash used by investing activities
Cash flows from financing activities:
Issuance of common stock
Payment of cash dividends
Net cash used by financing activities
Net increase in cash
Cash at beginning of period
Cash at end of period
172,000
$
20,000
(29,000)
(9,000)
22,000
33,000
55,000
Disclosure: Issuance of bonds to purchase land
$
110,000
(120,000)
(25,000)
4,000
(141,000)
SO 3 Prepare a statement of cash flows using the indirect method.
Investing and Financing Activities
From the additional information, the company acquired an office
building for $120,000 cash. This is a cash outflow reported in
the investing section.
Building
1/1/11
Balance
40,000
Office building 120,000
12/31/11 Balance
Slide
13-40
160,000
SO 3 Prepare a statement of cash flows using the indirect method.
Investing and Financing Activities
Partial statement
Slide
13-41
Illustration 13-14
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of building
Purchase of equipment
Sale of equipment
Net cash used by investing activities
Cash flows from financing activities:
Issuance of common stock
Payment of cash dividends
Net cash used by financing activities
Net increase in cash
Cash at beginning of period
Cash at end of period
172,000
$
20,000
(29,000)
(9,000)
22,000
33,000
55,000
Disclosure: Issuance of bonds to purchase land
$
110,000
(120,000)
(25,000)
4,000
(141,000)
SO 3 Prepare a statement of cash flows using the indirect method.
Investing and Financing Activities
The additional information explains that the equipment increase
resulted from two transactions: (1) a purchase of equipment of
$25,000, and (2) the sale for $4,000 of equipment costing $8,000.
Equipment
1/1/11
Balance
Purchase
12/31/11 Balance
Journal
Entry
Slide
13-42
10,000
25,000
Equipment sold
8,000
27,000
Cash
Accumulated depreciation
Loss on sale of equipment
Equipment
4,000
1,000
3,000
8,000
SO 3 Prepare a statement of cash flows using the indirect method.
Statement
of Cash
Flows
Indirect
Method
Illustration 13-14
Slide
13-43
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense
Loss on sale of equipment
Decrease in accounts receivable
Increase in inventory
Increase in prepaid expenses
Increase in accounts payable
Decrease in income taxes payable
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of building
Purchase of equipment
Sale of equipment
Net cash used by investing activities
Cash flows from financing activities:
Issuance of common stock
Payment of cash dividends
Net cash used by financing activities
Net increase in cash
Cash at beginning of period
Cash at end of period
$
145,000
9,000
3,000
10,000
(5,000)
(4,000)
16,000
(2,000)
172,000
(120,000)
(25,000)
4,000
(141,000)
$
20,000
(29,000)
(9,000)
22,000
33,000
55,000
SO 3 Prepare a statement of cash flows using the indirect method.
Investing and Financing Activities
The additional information notes that the increase in share
capital - ordinary resulted from the issuance of new shares.
Ordinary Shares
1/1/11
Balance
Shares sold
12/31/11 Balance
Slide
13-44
50,000
20,000
70,000
SO 3 Prepare a statement of cash flows using the indirect method.
Investing and Financing Activities
Illustration 13-14
Partial statement
Slide
13-45
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of building
Purchase of equipment
Sale of equipment
Net cash used by investing activities
Cash flows from financing activities:
Issuance of common stock
Payment of cash dividends
Net cash used by financing activities
Net increase in cash
Cash at beginning of period
Cash at end of period
172,000
$
20,000
(29,000)
(9,000)
22,000
33,000
55,000
Disclosure: Issuance of bonds to purchase land
$
110,000
(120,000)
(25,000)
4,000
(141,000)
SO 3 Prepare a statement of cash flows using the indirect method.
Investing and Financing Activities
Retained earnings increased $116,000 during the year. This
increase can be explained by two factors: (1) Net income of
$145,000 increased retained earnings. (2) Dividends of $29,000
decreased retained earnings
Retained Earnings
1/1/11
Dividends
29,000
Balance
Net income
12/31/11 Balance
Slide
13-46
48,000
145,000
164,000
SO 3 Prepare a statement of cash flows using the indirect method.
Statement
of Cash
Flows
Indirect
Method
Step 3: Net
Change in
Cash
Slide
13-47
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense
Loss on sale of equipment
Decrease in accounts receivable
Increase in inventory
Increase in prepaid expenses
Increase in accounts payable
Decrease in income taxes payable
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of building
Purchase of equipment
Sale of equipment
Net cash used by investing activities
Cash flows from financing activities:
Issuance of common stock
Payment of cash dividends
Net cash used by financing activities
Net increase in cash
Cash at beginning of period
Cash at end of period
Illustration 13-14
$
145,000
9,000
3,000
10,000
(5,000)
(4,000)
16,000
(2,000)
172,000
(120,000)
(25,000)
4,000
(141,000)
$
20,000
(29,000)
(9,000)
22,000
33,000
55,000
SO 3 Prepare a statement of cash flows using the indirect method.
Investing and Financing Activities
Question
Which is an example of a cash flow from an investing
activity?
a. Receipt of cash from the issuance of bonds
payable.
b. Payment of cash to repurchase outstanding
shares.
c. Receipt of cash from the sale of equipment.
d. Payment of cash to suppliers for inventory.
Slide
13-48
SO 3 Prepare a statement of cash flows using the indirect method.
Using Cash Flows to Evaluate a Company
Free Cash Flow
Free cash flow describes the cash remaining from
operations after adjustment for capital expenditures and
dividends.
Slide
13-49
SO 4 Analyze the statement of cash flows.
Using Cash Flows to Evaluate a Company
Illustration 13-16
Slide
13-50
SO 4 Analyze the statement of cash flows.
Understanding U.S. GAAP
Key Differences
Statement of Cash Flows
Companies preparing financial statements under both IFRS and
GAAP must prepare a statement of cash flows as an integral
part of the financial statements.
Both IFRS and GAAP require that the statement of cash flows
should have three major sections—operating, investing, and
financing—along with changes in cash and cash equivalents.
Similar to IFRS, the cash flow statement can be prepared using
either the indirect or direct method under GAAP. In both U.S.
and international settings, most companies choose the indirect
method for reporting net cash flows from operating activities.
Slide
13-51
Understanding U.S. GAAP
Key Differences
Statement of Cash Flows
The definition of cash equivalents used in GAAP is similar to
that used in IFRS. A major difference is that in certain
situations, bank overdrafts are considered part of cash and
cash equivalents under IFRS, which is not the case in GAAP.
Under GAAP, bank overdrafts are classified as financing
activities.
IFRS requires that non-cash investing and financing activities
be excluded from the statement of cash flows. Non-cash
investing and financing activities should be disclosed in the
notes instead of in the financial statements. Under GAAP,
companies may present this information at the bottom of the
Slide
13-52
cash flow statement.
Understanding U.S. GAAP
Looking to the Future
Statement of Cash Flows
Presently, the FASB and the IASB are involved in a joint project on
the presentation and organization of information in the financial
statements. One interesting approach, revealed in a published
proposal from that project, is that in the future the income
statement and statement of financial position would adopt headings
similar to those of the statement of cash flows. That is, the income
statement and statement of financial position would be broken into
operating, investing, and financing sections. With respect to the
cash flow statement specifically, the notion of cash equivalents will
probably not be retained. That is, cash equivalents will not be
combined with cash but instead will be reported as a form of highly
continued
Slide
13-53
Understanding U.S. GAAP
Looking to the Future
Statement of Cash Flows
liquid, low-risk investments. The definition of cash in the existing
literature would be retained, and the statement of cash flows would
present information on changes in cash only. In addition, the FASB
favors presentation of operating cash flows using the direct method
only. However, the majority of IASB members express a preference
for not requiring use of the direct method of reporting operating
cash flows. So, the two Boards will have to resolve their differences
in this area in order to issue a converged standard for the statement
of cash flows.
Slide
13-54
Using a Worksheet to Prepare the Statement of Cash
Flows-Indirect Method
Appendix A
Illustration 13A-1
Slide
13-55
SO 5 Explain how to use a worksheet to prepare the statement of cash flows
using the indirect method.
Using a Worksheet to Prepare the Statement of Cash
Flows-Indirect Method
Preparing a Worksheet
1. In the statement of financial position accounts section, list accounts
with debit balances separately from those with credit balances.
2. Enter in the reconciling columns of the worksheet the data that
explain the changes in the statement of financial position accounts
other than cash and their effects on the statement of cash flows.
3. Enter the cash line and at the bottom of the worksheet the increase
or decrease in cash. This entry should enable the totals of the
reconciling columns to be in agreement.
Slide
13-56
SO 5 Explain how to use a worksheet to prepare the statement of cash flows
using the indirect method.
Using a Worksheet
to Prepare the
Statement of Cash
Flows-Indirect
Method
Slide
13-57
Illustration 13A-3
Completed worksheet—
indirect method
Statement of Cash Flows-Direct Method
Appendix B
1. Under the direct method, companies compute net cash
provided by operating activities by adjusting each item in the
income statement from the accrual basis to the cash basis.
2. To simplify and condense the operating activities section,
companies report only major classes of operating cash
receipts and cash payments.
3. For these major classes, the difference between cash receipts
and cash payments is the net cash provided by operating
activities.
Slide
13-58
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Step 1: Operating Activities
Illustration 13B-2
Slide
13-59
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Illustration 13B-1
Slide
13-60
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Illustration 13B-1
Additional information:
1. In 2011, the company declared and paid a $32,000 cash dividend.
2. Bonds were issued at face value for $130,000 in cash.
3. Equipment costing $180,000 was purchased for cash.
4. Equipment costing $20,000 was sold for $17,000 cash when the book value of the
equipment was $18,000.
5. Ordinary shares of $60,000 were issued to acquire land.
Slide
13-61
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Cash Receipts from Customers
For Juarez Company, accounts receivable decreased $3,000.
Illustration 13B-3
Illustration 13B-5
Slide
13-62
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Cash Payments to Suppliers
In 2011, Juarez Company’s inventory increased $10,000
and cash payments to suppliers were $678,000.
Illustration 13B-6
Illustration 13B-7
Illustration 13B-9
Slide
13-63
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Cash Payments for Operating Expenses
Cash payments for operating expenses were $179,000,
Illustration 13B-10
Illustration 13B-11
Slide
13-64
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Cash Payments for Income Taxes
Cash payments for income taxes were $24,000,
Illustration 13B-12
Illustration 13B-13
Slide
13-65
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Step 2: Investing and Financing Activities
Increase in Equipment. (1) Juarez purchased for cash equipment
costing $180,000. And (2) it sold for $17,000 cash equipment
costing $20,000, whose book value was $18,000.
Illustration 13B-15
Slide
13-66
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Step 2: Investing and Financing Activities
Slide
13-67
Increase in Land. Juarez’s land
increased $60,000. The additional
information section indicates that the
company issued ordinary shares to
purchase the land.
Significant non-cash
investing and financing
transaction.
Increase in Bonds Payable. Bonds
Payable increased $130,000. The
additional information indicated that
Juarez issued, for $130,000 cash,
bonds with a face value of $130,000.
Financing activity.
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Step 2: Investing and Financing Activities
Increase in Share Capital - Ordinary.
The Share Capital - Ordinary account
increased $60,000. The additional
information indicated that Juarez
acquired land from the issuance of
ordinary shares.
Increase in Retained Earnings. The
$52,000 net increase in Retained
Earnings resulted from net income of
$84,000 and the declaration and
payment of a cash dividend
of $32,000.
Slide
13-68
Significant non-cash
investing and financing
transaction.
Financing activity (cash
dividend).
SO 6 Prepare a statement of cash flows using the direct method.
Statement of Cash Flows-Direct Method
Step 2:
Investing
and
Financing
Activities
Step 3: Net
Change in
Cash
Illustration 13B-16
Slide
13-69
SO 6 Prepare a statement of cash flows using the direct method.
Copyright
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Reproduction or translation of this work beyond that permitted in
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