{"id":634,"date":"2018-04-19T20:20:21","date_gmt":"2018-04-19T20:20:21","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/?post_type=chapter&#038;p=634"},"modified":"2024-04-29T17:35:33","modified_gmt":"2024-04-29T17:35:33","slug":"introduction-to-key-concepts-in-cash-flows","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/chapter\/introduction-to-key-concepts-in-cash-flows\/","title":{"raw":"Introduction to Key Concepts in Cash Flows","rendered":"Introduction to Key Concepts in Cash Flows"},"content":{"raw":"<h2>What you'll learn to do:\u00a0Discuss key financial principles needed to produce and analyze a statement of cash flows<\/h2>\r\nThe statement of cash flows goes through where are cash comes from in our company. We need to look a little deeper than just cash-in and cash-out to find out if we are managing our cash in the best way possible! We will go through two methods, the direct and indirect method. Most companies use the direct method, but it is good to be familiar with both.\r\n\r\nTake a look at this video for an introduction to the statement of cash flows and analysis of cash:\r\n\r\n<iframe src=\"\/\/plugin.3playmedia.com\/show?mf=7494712&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=nt7PAUIZwtU&amp;video_target=tpm-plugin-zqy45dg1-nt7PAUIZwtU\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe>\r\n\r\nThis statement allows us to better see where our money is coming from, how quickly we are collecting cash and where our cash is being spent!","rendered":"<h2>What you&#8217;ll learn to do:\u00a0Discuss key financial principles needed to produce and analyze a statement of cash flows<\/h2>\n<p>The statement of cash flows goes through where are cash comes from in our company. We need to look a little deeper than just cash-in and cash-out to find out if we are managing our cash in the best way possible! We will go through two methods, the direct and indirect method. Most companies use the direct method, but it is good to be familiar with both.<\/p>\n<p>Take a look at this video for an introduction to the statement of cash flows and analysis of cash:<\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/plugin.3playmedia.com\/show?mf=7494712&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=nt7PAUIZwtU&amp;video_target=tpm-plugin-zqy45dg1-nt7PAUIZwtU\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/p>\n<p>This statement allows us to better see where our money is coming from, how quickly we are collecting cash and where our cash is being spent!<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-634\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Introduction to Key Concepts in Cash Flows. <strong>Authored by<\/strong>: Freedom Learning Group. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>Purpose of the Statement of Cash Flows. <strong>Provided by<\/strong>: Edspira. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=nt7PAUIZwtU\">https:\/\/www.youtube.com\/watch?v=nt7PAUIZwtU<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":62559,"menu_order":2,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Key Concepts in Cash Flows\",\"author\":\"Freedom Learning Group\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Purpose of the Statement of Cash Flows\",\"author\":\"\",\"organization\":\"Edspira\",\"url\":\"https:\/\/www.youtube.com\/watch?v=nt7PAUIZwtU\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"}]","CANDELA_OUTCOMES_GUID":"be938171-ebc9-47a7-9bb9-5e222a8d47bb","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-634","chapter","type-chapter","status-publish","hentry"],"part":112,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/users\/62559"}],"version-history":[{"count":8,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/634\/revisions"}],"predecessor-version":[{"id":4158,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/634\/revisions\/4158"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/parts\/112"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapters\/634\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/media?parent=634"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/pressbooks\/v2\/chapter-type?post=634"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/contributor?post=634"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/wp-json\/wp\/v2\/license?post=634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}