Preparing the Statement of Cash Flows

What this note covers

1. Purpose and Structure of the Statement of Cash Flows
2. The Direct Method: Operating Activities
3. Investing Activities: Classification and Presentation
4. Financing Activities: Equity and Debt Flows
5. Reconciling Cash and Presenting the Complete Statement
6. Distinguishing Cash from Non-Cash Transactions
7. Interpreting the Statement and Linking to Decision-Making

7 sections · 12 key terms & formulas · 6 common mistakes