BU227 Lecture Notes - Lecture 5: Money Market Fund, Operating Cash Flow, Cash Cash
Document Summary
& outflows: calculate each net cash flow separately, then combine them to get net increase/decrease, cash flows from operating activities, not affected by accruals, deferrals, & allocations from timing of revenue/expense. : directly related to earnings from normal operations in cash recognition: there are 2 alternative approaches for representing the operating activities section, direct method reports cash flows from operating activities as gross receipts and gross payments. Inflows: cash received from: customers; net earnings (profit) dividends and interest on investments. Starts with profit and eliminates non-cash items to get net cash from operating activities net cashinflow outflow operatingactivities= profit adjustmentsfor noncashitems. 2012: sale or disposal of property, plant, equipment, sale or maturity of lt investments in, purchase of property, plant, and equipment, purchase of investments in securities. Loans to others securities: collections on loans, cash flows from financing activities: financing (owners and creditors) for the enterprise cash inflows/outflows related to external sources of.
