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statement of cash flows
the financial statement that describes an entity’s cash inflows and cash outflows during a period
this has only been around since 1983, now required because puts cash flow in another lens
no new info on this statement
designed to show info about the change in the cash balance from first balance sheet to second balance sheet
cash is defined as
cash and cash equivalents (short-term liquid investments)
includes bank account balances, cash, coin, and short-term liquid investments
how many sections appear on a statement of cash flows sheet?
operating activities
investing activities
financing activities
operating activities
cash transactions that enter into the determination of net income, there is a direct and indirect method
investing activities
cash transactions involved in the purchase and sale of PPE, other long-term assets and making/collecting loans (an investment to our firm)
PPE
property, plant, and equipment
financing activities
cash transactions whereby resources are obtained or repaid to owners and creditors
ex. borrowing or repaying money, receiving capital stock, paying dividends
indirect method
start with net income then make adjustments
direct method
a cash based income statement
Note 
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