TMP 120 Lecture Notes - Lecture 8: Cash Flow Statement, Income Statement, Retained Earnings
Document Summary
Cash flow: where the company gets cash, and where it goes, over a period of time, cash in and cash out . , cash transaction examples: Receiving money borrowed from a bank increases cash. Receiving money from customers for sale of product increases cash: cash flows from operations: Cash receipts from customers: increases cash & reduces. Cash disbursements (payments) to suppliers: reduces cash & reduces accounts payable: cash flows from investment activities: Cash receipts: interest on securities or bank deposits. Cash disbursements: purchase of property or equipment: cash flows from financing activities: Increases cash and increases liabilities or shareholder equity. Cash disbursements: paying off loans, paying dividends, buying back stock. Inventory decreases on balance sheet and cogs increase on. Net income (loss) entered on income statement and retained. Earnings adjusted on balance sheet: when customer pays for products: accounts receivable on. Balance sheet becomes cash from operations on cash flow. Expenses reduce net income on income statement and.
