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Income Statement: Sources

This document provides an overview of cash flow sources and uses. It discusses how cash flow is derived from the income statement, balance sheet, and owner's equity. Specifically, it notes that cash flow comes from (1) income, (2) current assets other than cash and current liabilities, (3) fixed assets, investments, and long-term liabilities per the balance sheet, and (4) owner's equity for sole proprietorships and partnerships. The document then provides a template for a cash flow statement, outlining the sources and uses of cash from operating, investing, and financing activities.

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35 views6 pages

Income Statement: Sources

This document provides an overview of cash flow sources and uses. It discusses how cash flow is derived from the income statement, balance sheet, and owner's equity. Specifically, it notes that cash flow comes from (1) income, (2) current assets other than cash and current liabilities, (3) fixed assets, investments, and long-term liabilities per the balance sheet, and (4) owner's equity for sole proprietorships and partnerships. The document then provides a template for a cash flow statement, outlining the sources and uses of cash from operating, investing, and financing activities.

Uploaded by

Irish Alon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Cash Flow lecture

Sources
Income Statement
I/S
I/S 1

Balance Sheet
Current assets 2
other than cash

current liabilities

Fixed assets

Investments

Longterm liab
Stockholders' Equity

Owner'sEquity
Single proprietorship
Partnership
X Company
Cash Flows Statement
Date
Cash from Operating Activities (indirect method)
Net Income
Adjustments for noncash items:
+ Depreciation
+ Amortization of intangible A
+ Amortization of bonds discount
-Amortization of bonds premium
- Gain on sale of F/A
+Loss on sale of FA
-Gain on sale of investment
+Loss on sale of investment

Adjustments for current activities


- increased in any current asset itemized
+ decreased in any current asset itemized

+increased in any current liabilities itemized


-decreased in any current liabilities itemized

Exempt: marketable securities - (investment)

Net cash used (Provided) by operating activities


note: used if negative; provided if positive

Cash from Investing activities


+ sale of fixed assets
- purchased of fixed assets
+ sale of investments
- purchased of investments
stocks of other companies
bonds of other companies
-Purchased intangible assets
patents, copyrights, franchise
land for future use
Net cash used or (Provided) by investing activities

Financing activities
+ borrowings (long-term)
- payments of loans
Note; Will not include interest

+ issuance of stocks(common/preferred)
- payment of dividends
- purchased of treasury stocks
+ Proceeds from sale of treasury stocks

+ additional investments (single prop)


- withdrawals (single prop.)

Net cash used or (provided) by financing activities


Decreased in cash
Add: beginning cash
Ending cash

Beginning cash 100,000


Ending cash 60,000
Difference (dereased) 40,000
10,000

40,000
-90,000
-40,000
100,000
60,000

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