Chapter 12 Summary

 Operations ◦ Income Statement ◦ Changes in Current Assets  Investing ◦ Changes in Long-Term Assets  Financing ◦ Changes in Long-Term Liabilities ◦ Changes in Stockholders Equity

Cash Provided (used) from Operations +- Current Assets & Liabilities +- Adjustments Net Income/(Loss)

 + Depreciation, Depletion, Amortization  + Loss on Sale of Asset  - Gain on Sale of Asset

 + Current Assets Decrease ◦ Collect A/R  Cash xxx  A/R xxxx ◦ No Effect on Net Income ◦ So we increase Operating Cash  - Current Assets Increase ◦ Credit Sales  A/R xxxx  Sales xxxx ◦ Net Income has increased but cash hasn’t ◦ Decrease Operating Cash  + Current Liabilities Increase ◦ Accrued Expenses  Tax Expense xxxx  Tax payable xxxx ◦ Net Income has decreased but cash hasn’t ◦ Increase Operating Cash  - Current Liabilities Decrease ◦ Payment of Liability  Tax Payable xxxx  Cash xxxx ◦ No Effect on Net Income ◦ So we decrease Operating cash

Cash Provided from Investing - Loans +Collections + Sale of LT Assets - Purchase LT Assets

Net Cash Provided from Financing - Dividends or Pmt of Note/Bond Payable + Stock Issued or LT N/P or Bonds +- Treasury Stock

Net Cash Flow for Period +- Financing +- Investing +- Operations