By the end of this section, you will be able to:
- The students should be able to prepare a Statement of Cash Flow by analyzing accounts and reporting the needed information to decision makers.
- ￼Explain the purpose of the Statement of Cash Flow.
- Explain the meaning of the terms “cash” and “cash equivalents.”
- List and describe the elements of the Statement of Cash Flow.
- Distinguish between the Direct and Indirect methods of preparing a Statement of Cash Flow
- Calculate cash flows from operating activities by the indirect method.
- Calculate cash flows from investing activities.
- Calculate cash flows from financing activities.
- Prepare a Statement of Cash Flow.
- Explain the nature of non-cash activities.