Chapter 12 - Statement of Cash Flows

Operating Cash Flows

Cash received and paid for day to day activities with customers, suppliers, employees, and landlords.

Investing Cash Flow

Cash paid and received from buying and selling investments and long-lived assets

Financing Cash Flows

Cash received and paid for exchanged with lenders and stockholders.

Operating inflows

received from customers, dividends and interest on investments.

Operating outflows

Cash paid for purchase of goods, services, salaries and wages, income taxes, interest on liabilities.

Investing inflows

sale or disposal of property, plant, and equipment

Investing outflows

purchase of property, plant, and equipment, and purchase of investments on securities.

Financing Inflows

Borrowing on notes, mortgages, bonds, from creditors, and issuing stock to owners.

Financing Outflows

Repayment of principal to creditors, repurchase of stock from owners, dividends to owners.

Introductory Phase

Negative operating and investing, Extreme positive financing

Growth Phase

Negative investing, positive operating and financing

Maturity Phase

Negative investing and financing, and positive operating

Decline Phase

Negative operating and financing, positive investing