CF 0

CF 1

Stmt Format

Income Taxes

Indirect Method

Solution 0

Does NI=CF?

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Cash Flow Statement Format

There are three major sections to the cash flow statement -- cash flows from operations, investing and financing.

OPERATING -- cash flows related to generating net income (revenues and expenses).

Cash Receipts from Customers

XXX

Operating Expense Paid in Cash

(XXX)

Income Tax Expense

(XXX)

Total Cash from Operations

XXX

INVESTING -- cash flows from investing in property, plant and equipment or from selling property, plant and equipment.

Sale of Plant Assets

XXX

Purchase of Plant Assets

(XXX)

Total Cash Received (Used)

XXX

FINANCING -- cash flows from long term borrowing (bonds and mortgages) or from issuing stock to investors. Also includes payment of dividends to stockholders.

Issuance of Stock

XXX

Payment of Dividends

(XXX)

Total Cash Received (Used)

XXX

 

Total Cash Flows

 

XXX

+ Beginning Cash

 

XXX

= Ending Cash

 

XXX

This final balance at the bottom of the cash flow statement should reflect the ending balance of the cash account.