Business Administration 1220E Chapter Notes - Chapter 3: Operating Cash Flow, Cash Flow, Income Statement

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Eric Cabral

Document Summary

Identifies specific activities that provided/consumed cash over a period of time. Shows the results of operations, financing decisions, and investing decisions. Shows how cash has been made or spent by a company over a period of time. Answers specific questions about activities that are not apparent in the balance sheet or income statement. 3 categories in the statement of cash flows: operations, financing activities, and. Operations: describes how day-to-day operations affect the flow of cash. Financing activities: transactions with creditors or investors used to fund either company operations or expansions. Investing activities: shows the effects on cash of all investing activities. Increases and decreases in balance sheets over a period of time can be either earnings or uses of cash. Measures the cash flow associated with normal business activities. Net income does not equal the cash flow from operations. Income statement may include expenses that are non-cash items (eg. depreciation)