Chapter 10 Cash Flow Statement 1c7332f807f54661aae55ffd9587e674

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School
University of Waterloo **We aren't endorsed by this school
Course
AFM 182
Subject
Finance
Date
Oct 21, 2023
Pages
26
Uploaded by BailiffOxide15932 on coursehero.com
Chapter 10: Cash Flow Statement 1 Chapter 10: Cash Flow Statement learning outcomes 1. Explain the importance of analyzing a company's cash flows. 2. Identify a company's operating, investing, and financing activities. 3. Explain the difference between operating income and cash flows from/for operating activities. 4. Prepare a cash flow statement. 5. Explain why the bank balance and book balance may differ. 6. Prepare a bank reconciliation. 10.1 - Overview of cash flows 10.1.1 - Overview of cash flows what kind of stakeholders care about cash flows? why? internal : if company needs additional cash to operate management monitors cash flows from ____ activities. these cash flows cover ____ and ____ activities operating...
Chapter 10: Cash Flow Statement 2 when cash flows from operating activities are insufficient, what activities must take place? financing, borrowing or rasing money how can internal stakeholders also use cash flow statements? predict future cash flows (forecasting cash flows) external : company's ability to pay dividends + whether investing enough cash to grow what does "cash is king" mean? for startups, founders spend a lot of time to make sure theres enough cash to cover day-to-day operating activities paying employees buying assets to grow business for private companies, cash if important too... operate, repay debt, make investments, and pay dividends to owners 10.1.2 - Operating, investing, and financing activities any activity of a company falls into these 3 categories, describe them
Chapter 10: Cash Flow Statement 3 Operating activities related to operating core business cash from selling goods cash to pay employees Investing activities purchasing and disposing long term assets + investments (not cash equivalents). cash to purchase new software (LTA) cash to expand manufacturing facility cash to lend money to another party Financing activities business activities to raise capital cash to repay loan borrowed cash from bank full chart of activities
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