We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byAinsley Akey
Modified over 2 years ago
Statement of Cash Flows Barbara Clemenson, CPA, CFRE
Clemenson - Statement of Cash Flows © 2 Overview Show me the Cash!!!!!! The other financial statements give us a picture of what the organization owns, owes and is worth [Balance Sheet] and what it makes and spends [Income Statement and Statement of Functional Expenses]
Clemenson - Statement of Cash Flows © 3 Overview Show me the Cash!!!!!! But we know because of accruals, except for the “Cash and Cash Equivalents” on the Balance Sheet, we really don’t know how much the organization made or spent in cash, or how it spent that cash.
Clemenson - Statement of Cash Flows © 4 Overview Show me the Cash!!!!!! The Statement of Cash Flows gives us that critical information!
Clemenson - Statement of Cash Flows © 5 How the Statement of Cash Flows is Organized Cash Flow Statement divide what the organization does into three parts: Cash Flows from Operating Activities – This is what the organization does for a living. It should have positive cash flow from what it does. Cash Flows from Investing Activities – This is how it is using its assets. Cash Flows from Financing Activities – This is how it is using its liabilities and net assets.
Clemenson - Statement of Cash Flows © 6 Denver Rescue Mission Operating Activities – Regular income and Expenses Investing Activities – Buy or Selling Assets Financing Activities – Obtaining or Paying Back Loans Net Increase (Decrease) in Cash
Clemenson - Statement of Cash Flows © 7 What is important to note First of all, is Cash and Cash Equivalents increasing or decreasing overall? Does this make sense with what you know about the organization? Are they at a sustainable level with their cash? I.e., Can they pay their bills? Do they have enough to weather bad times?
Clemenson - Statement of Cash Flows © 8 Denver Rescue Mission Denver Rescue Mission spent more cash than it took in in 2005 [left hand column], but took in more cash than it spent in 2004 [right hand column]. As of the end of its 2005 fiscal year, it had $1,581,891 in cash.
Clemenson - Statement of Cash Flows © 9 What is important to note Second, are they making money in Operations, or are they financing their Operations in other ways? Once assets are sold, they are gone and can no longer be used to generate income or provide services. What is their level of debt, and is that increasing or decreasing? How will that affect their long-term operations and sustainability?
Clemenson - Statement of Cash Flows © 10 Denver Rescue Mission Denver made money in operations both years.
Clemenson - Statement of Cash Flows © 11 Denver Rescue Mission Denver spent more money[ ($XX) = negative numbers] on assets in 2005 than it gained in selling assets [ $XX = positive numbers]. They sold more assets in 2004 than they bought. Most of the times, organization’s investing cash flow will be negative because they’ll be buying assets.
Clemenson - Statement of Cash Flows © 12 Denver Rescue Mission Denver borrowed more money than it paid back in loan in 2005 [ $XX = positive number]. In 2004 it paid back a debt and did not borrow anything [ ($XX) = negative number.
Clemenson - Statement of Cash Flows © 13 Denver Rescue Mission Overall, the Denver Rescue Mission spent more cash than it took in in 2005, but took in more cash than it spent in 2004. It still have over $1.5 million in cash left over. It could spend more than it took in this year, because they had build up previous profits!!!!!
Clemenson - Statement of Cash Flows © 14 Summary The Statement of Cash Flows provides us with information not found in any other statement: How the organization is making or spending actual cash. How that type of income and spending will affect the organization in the long term.
Accounts. Key Accounting Documents Public Limited Companies in the UK are required to publish their accounts This will usually consist of three key accounting.
Accounts Interpreting Accounts. Key Accounting Documents Public Limited Companies in the UK are required to publish their accounts This will usually consist.
Personal Financial Statements Chapter 12 Personal Financial Statements The Balance Sheet.
Financial Accounts Not for now but later… Some financial disasters to consider, just if you didn’t think the topic was important… Kodak https://youtu.be/mNdAYqlKfqY.
The Balance Sheet. What is a Balance Sheet? A financial statement that shows the company’s assets, liabilities, and net worth (also known as equity) on.
Financial Analysis of a Business
The CASH FLOW Statement (Statement of changes in financial position) Text Chapter 18, Pages , Practice Questions: 1.BE18-1, BE18-2, BE18-3,
Ch Personal Finance Personal Finance. How much money will the average American earn in their working lifetime? (35 years) How much money will the.
Section 36.2 Financial Aspects of a Business Plan
FINANCE HIGHER BUSINESS MANAGEMENT UNIT 3. IMPORTANCE OF FINANCE Ensures that there are enough funds available to get the resources needed to meet objectives.
Fraser/Ormiston: Understanding Financial Statements, 6th ed. (C) 2001 Prentice Hall Business Publishing UNDERSTANDING FINANCIAL STATEMENTS STATEMENT OF.
Chapter 36 financing the business Section 36.1 Financial Analysis
Nursery Management Understanding and Managing Finance Session 2.
FINANCIAL RESOURCES MANAGEMENT
FINANCIAL STATEMENTS. Why Use Financial Statements? Investors and bankers Investors and bankers Suppliers and creditors Suppliers and creditors You and.
Copyright 2003 Prentice Hall Publishing Company1 Chapter 10 Preparing a Statement of Cash Flows.
Accounting Fundamentals Dr. Yan Xiong Department of Accountancy CSU Sacramento The lecture notes are primarily based on Reimers (2003). 7/11/03.
Statement of Cash Flows
Financial Statement Basics BDI3C. Major Financial Statements Balance Sheet Individual: Net Worth Statement Income Statement Cashflow Statement.
Introduction to Accounting. What is accounting? The system of recording and summarizing ______________ ___________and analyzing, verifying, and reporting.
We will begin with financial statements analysis The SEC requires all companies that sell securities to the public to disclose information about the company’s.
By : Breana Moore Principles Of Business and Finance, Period 02.
PERSONAL FINANCE Financial planning for individuals. Generally, it involves analyzing your current financial position, predicting short-term and long-term.
11 FINANCIAL STATEMENTS Section 11.1 Income Statements & Cash Flow
The Statement of Cash Flows Chapter 5 Matakuliah: V Manajemen Akuntansi Hotel Tahun:
Provide information about cash receipts and payments during an accounting period Helps us see how financial position changes.
Objective 4.01 Understanding Financial Management. 1.
money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)
Reporting and Analyzing Cash Flows Chapter 17. Purposes of the Statement of Cash Flows Designed to fulfill the following: – predict future cash flows.
1 © Copyright Doug Hillman 2000 Statement of Cash Flows.
Chapter 11 Financials. Balance Sheet Income Statement Statement of Cash Flows Why do we even need financials – can’t we just see that we’ve got.
Managing Success By The Number $. B Y T HE N UMBERS Can Profitable Companies Fail? –YES! What About High Cash Flow? –YES! Profitable AND High Cash Flow?
Chapter 36 Financing the Business Section 36.1 Preparing Financial Documents Section 36.2 Financial Aspect of a Business Plan Section 36.1 Preparing Financial.
Cash Flow 101 Instructions
Understanding and Managing Finance This Presentation is in Self-Study Form To start the presentation: Press F5 (Top Row of Keyboard) Then use the navigation.
1 Republic of Macedonia-ESM EVN Income statement For the year ended 31 December _____ Note Current year Previous year Revenues Electricity revenues Other.
CHAPTER 4 QuickBooks QuickBooks Develop Balance Sheets and Profit & Loss Statements (Income Statements) Develop Better Management Practices.
Finance Chapter 2 Financial statements. Financial statements & reports Annual report—a report issued once a year by a corporation to its stockholders,
Financing Your Business
Module 2: Statement of Cash Flows ACG 2071 Created by M. Mari.
Balance sheet Business Studies.
GAAP PowerPoint #4. A formal record of the financial activities of a business Includes four basic financial statements: ◦ Balance Sheet (Statement.
Lesson 5 Cash Flow Statement Li, Jialong
Business Plans Part 4 Taken from
Balance Sheets Analyzing Assets, Liabilities, & Equity.
Financing Unit 6.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 12 SLIDE Financial Records and Financial Statements 12.
Mary Sobba Agriculture Business Specialist Farming, Women and Money.
©2006 Prentice Hall Business Publishing Financial Accounting, 6/e Harrison/Horngren 1 The Statement of Cash Flows Chapter 12.
© 2017 SlidePlayer.com Inc. All rights reserved.