COMMERCE 1AA3 Lecture 10: Class 10
10 Mar 2017
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The statement of cash flows are divided into: Must be positive, it is the bread and butter of the company. It"s okay for a start-up to be bleeding a bit. Buying and selling shares, boring money and paying pack money, paying dividends. Dividends are a gift for buying a share. A company can choose whether or not to pay dividends. The balance sheet is unique because it prepared for a point in time. The other three are for a period of time. The cash ow statement is the only nancial statement that is not prepared under the accrual basis. Because it is about cash, it is prepared under cash basis. Comparative balance sheet (this year and last year) Cash from operating activities can be calculated using one of two methods: On the midterm, only the indirect method will be used. However, on the quizzes direct may be used. Net income or net earnings (this is not necessarily cash)
