会计学原理英文课件13.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * The Statement of Cash Flows will begin with Boston Beer’s Net income from the Income Statement. Step 1Adjust net income for noncash revenues/expenses (depreciation amortization). Alternatively, with additional information: 1. $2,373 cash spent on purchasing new equipment. 2. No equipments are sold; Step 2Adjust net income for gains and losses. Step 3Adjust net income for changes in current assets and current liabilities. Learning Objectives Report and interpret cash flows from investing activities. Reporting Cash Flows for Investing Activities To identify cash flow effects of investing activities Analyze long-term assets (PPE investments) Analyze short-term assets (investments) Here is the balance sheet we looked at earlier. Let’s focus on the investing accounts. If you had access to additional company information, you would discover that the company purchased $2,373 of new equipment. This is offset by $2,543 in depreciation expense). No short-term investments are sold/matured. Short-term investments increased by $4,627 during the quarter. Although short-term investments is a current asset, it is reported in the investing section on the statement of cash flows. Learning Objectives Report and interpret cash flows from financing activities. Reporting Cash Flows for Financing Activities To identify cash flow effects of financing activities Analyze long-term debts Analyze equity accounts Here is the balance sheet we looked at earlier. Let’s focus on the financing account. The net increase in Contributed Capital of $1,184 was caused by two transactions. First, Boston Beer repurchased $4,409 of outstanding stock, which is a cash outflow. Second, the company issued common stock to employees for $5,593, which is a cash inflow. Learning Objectives Explain the impact of additional cash flow disclosures. Required Supplemental Information Reconciliation of net income to cash