Submitted by: Submitted by bo5arest
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Category: Business and Industry
Date Submitted: 11/20/2015 02:55 PM
NOTE: do not account for the change in retained earnings in the financing section! Why? Because the change in R/E is net income minus dividends. Net income is shown under op. activities. Dividends, if cash, is shown in the financing section.
NOTE: do not account for the change in retained earnings in the financing section! Why? Because the change in R/E is net income minus dividends. Net income is shown under op. activities. Dividends, if cash, is shown in the financing section.
| General rules for the Statement of Cash Flows (Indirect Method)
Cash provided by op. activities:
Net Income (from income statement).
+ Depreciation, amortization, and/or depletion (from income statement).
+ Decrease in CURRENT Asset accounts other than cash (calculate the difference between this period and last period from the balance sheet).
- Increase in CURRENT Asset accounts other than cash (calculate the difference between this period and last period from the balance sheet).
+ Increase in CURRENT Liabilities accounts (calculate the difference between this period and last period from the balance sheet).
- Decrease in CURRENT Liabilities accounts (calculate the difference between this period and last period from the balance sheet).+ Loss on Disposal of PPE/Fixed Assets used in normal operations (from the income statement).- Gain on Disposal of PPE/Fixed Assets used in operations (from the income statement).
= Cash provided by op. activities
Cash provided by investing activities:
- Increase in PPE and Long-Term Assets if paid cash (calculate the difference between this period and last period from the balance sheet).
+ Decrease in PPE and Long-Term Assets if received cash (calculate the difference between this period and last period from the balance sheet).
- Increase in Investments Assets if paid cash (calculate the difference between this period and last period from the balance sheet).
+ Decrease in Investments Assets if received cash (calculate the...