stanAccounting Standard (AS) 3 (revised 1997) Cash Flow Statements Contents OBJECTIVE SCOPE BENEFITS OF CASH FLOW INFORMATION DEFINITIONS Cash and Cash Equivalents PRESENTATION OF A CASH FLOW STATEMENT Operating Activities Investing Activities Financing Activities REPORTING CASH FLOWS FROM OPERATING ACTIVITIES REPORTING CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES REPORTING CASH FLOWS ON A NET BASIS FOREIGN CURRENCY CASH FLOWS EXTRAORDINARY ITEMS INTEREST AND DIVIDENDS TAXES ON INCOME
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Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics|Questions|Brief Exercises|Exercises|Problems| Concepts for Analysis| 1.|Format‚ objectives purpose‚ and source of statement.|1‚ 2‚ 7‚8‚ 12||||1‚ 2‚ 5‚ 6| 2.|Classifying investing‚ financing‚ and operating activities.|3‚ 4‚ 5‚ 6‚ 16‚ 17‚ 19‚24|1‚ 2‚ 3‚ 6‚ 7‚ 8‚ 12|1‚ 2‚ 10||1‚ 3‚ 4‚ 5| 3.|Direct vs. indirect methods of preparing operating activities.|9‚ 20|4‚ 5‚ 9‚ 10‚ 11|3‚ 4||5| 4.|Statement of cash flows— direct method
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Details Assignment score: 40% Total Time spent: 17 minutes‚ 54 seconds Score for selected take: 40% (4/10) Time spent on selected take: 1. Your answer: Multiple Choice 15-1 Cash inflows from operating activities come from a. payment for raw materials. b. gains on the sale of operating equipment. c. collection of sales revenues. d. issuing capital stock. e. issuing bonds. 2. Your answer: Multiple Choice 15-2 Cash outflows from operating activities come
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business in the long term‚ short term or both.Factors which are relevant in the short term may be irrelevant in the long run and vice-versa‚ but in evaluating the factors which are quantitative and qualitative‚ only the revenues and costs which are affected by the decision are relevant.In the short term‚ fixed costs remain fixed and therefore are irrelevant for decision making. The variable cost will change with the level of activity.Factors which are not relevant to decision-making include:-SUNK COSTS:Costs
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of Cash flow * Cash flow is more “direct” as “profit” is highly dependent on accounting conventions and concepts/principles * Cash flow reporting satisfies the needs of all users better since cash flow is more direct with its messages. Some of the interested user parties are: * Creditors -repayment of debts‚ overdue accounts * Management -cash flow reporting provides the type of information which decision should be taken re: relevant costs ( decision based on future cash flow)
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I will be analyzing how technology has affected time and how it has helped our society advance by using numerous inventions. “To us‚ for example‚ the moment 8:17 can mean something – something very important‚ if it happens to be the starting time of our daily train”(Huxley 715). It has affected time by making our daily life more efficient by using different forms of technology to reduce the amount of time it takes to complete a task and increased the use of automated machinery. Technology has revolutionized
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Accruals and the Prediction of Future Cash Flows: evidence from China Background Predicting the company’s future cash flows is of high significance in accounting and finance areas alike‚ due to the fact that the ability of company generating cash flows substantially influences its securities value. For this purpose‚ Financial Accounting Standards Board (FASB) states that the primary objective of financial reporting is to provide information to help investors‚ creditors‚ and others in assessing
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CASE 2 Cash Flow Estimation and Risk Analysis Robert Montoya‚ Inc. Robert Montoya‚ Inc.‚ is a leading producer of wine in the United States. The firm was founded in 1960 by Robert Montoya‚ an Air Force veteran who had spent several years in France both before and after World War II. This experience convinced him that California could produce wines that were as good as or better than the best France had to offer. Originally‚ Robert Montoya sold his wine to wholesalers for distribution
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Advantage Disadvantage and Uses of Cash Flow Statement & Funds Flow Statement There are 3 basic financial statements that exist in the area of Financial Management. 1. Balance Sheet. 2. Income Statement. 3. Cash Flow Statement. The first two statements measure one aspect of performance of the business over a period of time. Cash flow statements signify the changes in the cash and cash equivalents of the business due to the business operations in one time period. Funds flow statements report changes
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The Just In Time Inventory System The Just In Time (JIT) inventory system is an inventory strategy used by businesses to increase productivity‚ quality of product and sales‚ while decreasing labor costs and space. JIT allows a company to purchase materials only as needed to meet actual customer demand. When using JIT‚ inventory can be reduced to the bare minimum‚ even to zero. To successfully implement the JIT inventory system you must carefully schedule material to arrive when needed
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