ECON 10B Lecture Notes - Lecture 2: Treasury Stock, Preferred Stock, Net Income
Document Summary
A = l + e statement of cash ows = follows cash transactions. Statement of cash ows is required to be published by comanies. Statement of cash ows covers a period of time. Cash in ows = from customers for the sales of merchandise inventory and services/for interest and dividend income. Cash out ows = for the purchase of merchandising inventory and payment of operating expenses/ for interest expense and income tax expense current assets and current liabilites impact operating activities. Cash infows = from the sale of property, plant, equpiment and investments/ from the colletion of long-term notes receivable. Cash out ows = to purchase property, plant, equipment, and investments/ for loans made to borrowers. Cash in ows = from issuance of stock and selling treasury stock/ from receipt of borrowing money. Cash outlows = for payment of dividends and buying treasury stock/ for repayment of loans.
