ACC-202 Lecture Notes - Lecture 36: Cash Flow Statement, Income Statement, Financial Statement
13 Apr 2016
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Method that most companies use because it"s the easiest method. Starts with net income (bottom line of the income statement) List out classify: (e. g. was this cash to a vendor, was this cash from a customer e. t. c . ) So, classify the cash flows and disclose them (oif) A lot more effort: like creating a brand new statement. First line is always the name of the company. Third line is date/s of the statement. Net income xx/xx/xx (+ add back non cash expenses:) Loan ,000 (have to use the specific words: cash flows from ** activities") Net increase/ decrease in cash = a+b+c. **where can you find the cash at the start of the year = always get it from end of year balance sheet from the previous year (prior year, and of year) **where can you get how much cash a company has at the end of the year =
