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CORPORATE FINANCIAL REPORTING

Cash Flow Statement. CORPORATE FINANCIAL REPORTING. C ASH F LOW S TATEMENT. Operating activities xxxx Investing activities xxxx Financing activities xxxx Increase (decrease) in cash xxxx Cash, beginning of the year xxx Cash, end of the year xxxx.

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CORPORATE FINANCIAL REPORTING

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  1. Cash Flow Statement CORPORATE FINANCIAL REPORTING Long-Lived Assets

  2. CASH FLOW STATEMENT Operating activities xxxx Investing activities xxxx Financing activities xxxx Increase (decrease) in cash xxxx Cash, beginning of the year xxx Cash, end of the year xxxx Cash Flow Statement

  3. CASH FLOW STATEMENT Operating activities normal day-to-day income producing activities (including buying/selling Trading Securities) Investing activities acquiring/disposing of non-current assets (including buying/selling Securities Available For Sale) lending and being repaid the principle Financing activities borrowing and repaying the principle amount borrowed all cash transactions with shareholders Cash Flow Statement

  4. CASH FLOW STATEMENT Companies don’t really prepare cash flow statements like we did the first day of class. They use, as much as possible, a logic based approach. Cash Flow Statement

  5. CASH FLOW STATEMENT Suppose you saw the following under ASSET on a company’s balance sheet: (in $ 000) 20102009 Land 10,000 4,000 and under LIABILITIES there were noliabilities for a land purchase. What would you surmise happened? Cash Flow Statement

  6. CASH FLOW STATEMENT Suppose you saw the following under ASSETS on a company’s balance sheet: (in $ 000) 20102009 Land 10,000 4,000 and under LIABILITIES there was: 20102009 Mortgage payable for land 5,000 -0- What would you surmise happened? Cash Flow Statement

  7. CASH FLOW STATEMENT Suppose you saw the following under ASSETS on a company’s balance sheet: (in $ 000) 20102009 Land 10,000 24,000 and there is no loss from land impairment on the 2020 income statement. What would you surmise happened? Cash Flow Statement

  8. CASH FLOW STATEMENT Suppose you saw the following under ASSETS on a company’s balance sheet: (in $ 000) 20102009 Land 10,000 24,000 Nothing about a receivable from sale of land. And on the 2010 income statement you saw Gain on land sale 5,000 - What would you surmise happened? Cash Flow Statement

  9. CASH FLOW STATEMENT Suppose you saw the following under ASSETS on a company’s balance sheet: (in $ 000) 20102009 Land 10,000 24,000 And on the 2010 income statement you saw Impairment of land (14,000) - What would you surmise happened? Cash Flow Statement

  10. CASH FLOW STATEMENT Suppose you saw the following under OWNERS’ EQUITY on a company’s balance sheet: (in $ 000) 20102009 Capital stock 10,000 7,000 Paid in surplus 14,000 9,000 What would you surmise happened? Cash Flow Statement

  11. CASH FLOW STATEMENT For the most part, that is the approach companies take to prepare cash flow statements. Cash Flow Statement

  12. CASH FLOW STATEMENT Warning! Accounting professors love to put cash flow statement problems on tests. Cash Flow Statement

  13. CASH FLOW STATEMENT QUESTIONS? Cash Flow Statement

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