Chapter 11

Source of cash

any cash that came in, not just earned; also includes money that does not go out

Use of cash

any cash that went out, not just expenses; also includes money that does not come in

Examples of uses of cash

asset increases or liability decreases

Examples of sources of cash

asset decreases or liability increases

When making SCF, what is ignored on the balance sheet?

changes in cash & retained earnings

Operating

regular transactions & current assets/liabilities

Investing

long-term assets

Financing

long-term liabilities, stocks, & dividends

Depreciation is

a source of cash

Gain is

a use of cash that gets subtracted from either net income or operating in SCF

Loss is

a source of cash that gets added to operating in SCF