Cash Flow Statement

Financial Accounting BYU ACC 403

Operating Activities Cash Inflows

Sales of goods or services

Collection on interest and dividends

Operating Activities Cash Outflows

Purchase of inventory

Payment for operating expenses (income statement)

Payment of interest

Payment of income taxes

Investing Activities Cash inflows

Sales of investements

Sale of long-term assets

Collection of notes receivable

Sale of subsidiary

Investing Activities Cash Outflows

Purchase of investements

Purchase of long-term assets (CAPEX)

Lending with notes receivabe

Cash acquisition of another company

Financing Activities Cash inflows

Issuance of bonds or notes payable

Issuance of stock

Financing Activities Cash Outflows

Repayemtn of bonds or notes payable

Payments to repurchase stock (treasury stock)

Payment of dividends

Cash Received from Customers

• Closing AR - Sales - Beginning AR

(Can be algebraically manipulated)

A credit to AR is an increase in cash becasue we are collecting

Cash Paid to Employees

Use salaries payable and salaries expense to solve for Cash paid for salaries and wages

• (End balance) + Opening Balance + Salaries Expense

• 
  

Interest Paid

Use interest payable and interest expense to solve for cash paid for interest

Income taxes paid

Use income Tax Payable and income tax expense to solve for cash paid in income taxes

Cash Paid to Suppliers

Accounts Payable with opening and closing balance and inventory purchased on credit which can be found by taking the inventory account with its opening and closing balance and COGS to solve for inventory purchased in the T account