CF 0

CF 1

Stmt Format

Income Taxes

Indirect Method

Solution 0

Does NI=CF?

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Cash Flow Handouts

This is the home page for a group of handouts on cash flow.

1. CF 0

Basic example using cash account changes. This is a good place to start as far as seeing operating, investing, and financing changes to the CASH account.

2. CF 1

Basic example with receivables and payables. You will note that receivables and payables complicate matters, because they are not cash.

3. CF Statement Format

Format for the Cash Flow Statement, with examples using CF 0 and CF 1.

4. Income Tax Table (Corp.)

Table for 2004 corporate tax returns (1120)

5. Indirect Method

Basic example of the indirect method. This method is used by most practitioners. It focuses on the differences between net income and cash. We start with the basic question: is net income = cash flow?

6. Solution for CF Zero

Includes Indirect Method for CF from Operations

7. Net Income vs. Cash Flow

Good place to start...examples show why the indirect method works