STATEMENT OF CASH FLOWS (OIF)
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Book value = Cost - Accumulated depreciation
Sale = Book value - Loss /+ gain
Purchase = Ending - Beginning + Cost
Net AR = AR - ADA
Depreciation expense = Ending - Beginning - acc. dep. on equipment sold
Common stock = closing - opening - common stock issued for PPE purchased
Dividends paid = opening RE + NI - Closing RE
Cash flows from operating activities (indirect method)
Adjustments to reconcile net income to net cash provided by operating activities:
(+) Depreciation
(+) Amortization of bond discount
(-) Amortization of bond premium
(+) Equity method loss
(+) Dividends received
(-) Income from equity investments (more than 20%)/equity in earnings of co.
(+) Loss on sale of plant assets/impairments/investments
(+/-) Decrease/Increase in current assets
(+/-) Increase/Decrease in current liabilities
Cash flows from investing activities
(+) Sale of operating assets & investments (except trading securities)
(+) Collection of long-term loan
(-) Purchase of operating assets & investments (except trading securities)
(-) Loaning out money ( loan to Co.)
Cash flows from financing activities
(+) Increase in debt
(+) Increase in nontrade notes payable and bonds payable
(+) Increase in capital invested by owners (by issuing stock/bonds payable)
(-) Repayment of debt (principal) [Debt payments]
(-) Decrease in nontrade notes payable and bonds payable
(-) Payment of dividends
(-) Repurchasing stock
(-) Payback long-term loans
Noncash Investing and Financing Activities
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Purchase of longExchange of noncash assets for other noncash
Purchase of noncash assets by issuing equity or debt.