Business Administration 1220E Chapter Notes -Operating Cash Flow, Cash Flow, Capital Structure

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

Document Summary

Identifies the specific activities that provided or consumed cash during a specific period of time. The statement can be looked at like a link between two balance sheets. Reveals how cash has been generated and used by a company over a specified period of time (usually one year) Answers specific questions concerning the activities of a business that are not readily apparent from the balance sheet and statement of earnings. Measures the cash flow associated with normal business activities. The operations section of this statement adjusts the reported net earnings to a cash basis to determine cash flows from operations. The changes in current assets and current liabilities accounts are determined by comparing balance sheets at the beginning and end of the accounting period: increases in asset accounts and decreases in liability accounts have a. Negative impact on the operating cash flow (they represent uses of cash: decreases in asset accounts and increases in liability accounts have a.