COMM 111 Lecture Notes - Lecture 11: Cash Flow, Share Repurchase, Accounts Payable
Document Summary
Cash flows from operating activities: cash flow from net income, current assets, current liabilities. Cash flows from investing activities: cash flow from long term assets (primarily, generally property, plant & equipment. Cash flows from financing activities: cash flow from long-term liabilities and shareholders equity (primarily, how are you going to pay for this (not accounts payable or accrued liabilities) i. e note payable, liabilities payable. Primary focus is cash flow related to long term assets. Cash paid to acquire property, plant and equipment. Selling property plant equipment, getting paid back for a bond, or sell a share. Proceeds from disposal of property, plant and equipment. Primary focus is cash flow from long-term liabilities and shareholder"s equity. In the long-term, a business needs to generate cash flows from operations to be successful. Cash flows generated/used from/for regular business activity sale of goods. Company"s may choose the )ndirect or direct method to report cash flows.
