Unit 17: Statement of Cash Flows

Learning Objectives

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.