BUS-A 100 Lecture Notes - Lecture 7: Fixed Asset, Financial Statement, Accounts Receivable

• School: IU
• Department: Business
• Course: BUS-A 100
• Professor: Winston Vivian

Document Summary

Understand how to determine each of operating, financing, and investing cash flows by looking at two consecutive balance sheets. Cash flows can often be determined from the other financial statements with a small amount of additional information. In the left hand column is a listing of the company"s assets. Under 2014 are the balances in those accounts at the end of 2014, and the 2015 column has the balance at the end of 2015. The next column is a listing of the liabilities and stockholders" equity accounts and then the balances for each of those accounts at the end of 2014 and 2015. Notice that the two 2014 columns make up the 2014 balance sheet, and the two 2015 columns make up the 2015 balance sheet. We can use these two balance sheets to determine the cash flows for the year. 2015 because the ending balances for 2014 become our beginning balances for 2015.