Term
| Examples of Operating Cash Flows |
|
Definition
-cash received from customers
-cash paid to suppliers, employees, insurers
-taxes paid
-interest received and paid
-cash dividends received
-cash received or paid in the sale or purchase of investments classified as trading securities |
|
|
Term
| Examples of Investing Cash Flows |
|
Definition
-Cash received or paid in the sale or purchase of property, plant, and equipment
-cash received or paid in the sale or purchase of available-for-sale investments, held-to-maturity investments, and equity method investments
-cash paid to acquire other firms in a merger |
|
|
Term
| Examples of Financing Cash Flows |
|
Definition
-cash received and paid in short and long term borrowing
-cash received from stock issuances, including the strike price from stock option exercises
-cash paid as dividends
-cash paid of the repurchase of a firm's own stock (treasury stock) |
|
|
Term
| Operating Cash Flow Accounts |
|
Definition
accounts receivable
prepaid expenses
inventory
interest receivable
marketable securities - trading
accounts payable
wages payable
interest payable
income taxes payable
unearned (deferred) revenue
retained earnings |
|
|
Term
| Investing Cash Flow Accounts |
|
Definition
marketable securities - available for sale
land
building
equipment
other LT investments and intangibles |
|
|
Term
| Financing Cash Flow Accounts |
|
Definition
Current maturities of LTD
dividends payable
non-current liabilities
LTD
bonds payable
stock
additional paid-in capital
treasury stock
retained earnings |
|
|
Term
|
Definition
Operating Cash Flow = Net Income
+ changes in owners equity related to OCF (depreciation expense)
- changes in assets related to OCF
+ changes in liability related to OCF |
|
|
Term
|
Definition
Beginning Balance
+ Purchases
- Sales of PP&E
=Ending Balance |
|
|
Term
|
Definition
Beginning Balance
+ Stock Issues
- Stock repurchases
=Ending Balance |
|
|
Term
|
Definition
Beginning Balance
+ Net Income
- Dividends
=Ending Balance |
|
|
Term
| Extended gain/loss formula |
|
Definition
OCF = Net Income
+ Depreciation Expense
+ Losses
- Gains
- dAssets related to OCF
+ dLiabilities ralated to OCF |
|
|
