Principles of Financial Accounting · free preview
Preparing the Completed Statement of Cash Flows, Indirect Method
Assembling the full statement ties the operating, investing, and financing sections together with supplemental disclosures, and every total must reconcile to the balance sheet cash change before the statement is released.
1. The full assembly
The full assembly
2. Reading the assembled statement
Reading the assembled statement
3. Common assembly errors
Common assembly errors
4. The statement in context
The statement in context
5. Reconciliation target
What must the net change in cash on the statement equal?
6. Supplemental schedule content
What belongs in the supplemental schedule of an indirect-method statement?
7. Self-funding pattern
A company's operations generate enough cash to fund its investing and financing outflows fully. What does this pattern signal?
8. Double-counting trap
A gain on equipment sale was not adjusted out of the operating section. What is the consequence?
9. Ending cash computation
Beginning cash is 60,000 dollars and the net change from the three sections is 47,000 dollars. Compute ending cash in dollars, number only.
10. Noncash disclosure example
Equipment acquired by signing a 40,000 dollar note appears in which disclosure? Two words.
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