Term
| Purposes of Statement of Cash Flows |
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Definition
-predict future cash flows
-helps management evaluate decisions
-determines ability to pay dividends and interest
-shows relationship of net income to cash flows (indirect method only) |
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Term
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Definition
-Preferred under IFRS
-Shows cash flows by type (operating, investing, financing)
-clearer for investors |
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Term
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Definition
| -most popular for US financial statements |
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Term
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Definition
Cash flows directly related to actual operating transactions
Ex. collecting A/R, sales, etc. |
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Term
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Definition
reflects how the company uses its long-term resources
Ex. buying land, selling long-term investment, etc. |
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Term
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Definition
related to long-term debt and equity
Ex. selling stock, borrowing money, repay debt, etc. |
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Term
| Non-cash investing and financing |
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Definition
investment that must be disclosed through non-cash methods
Ex. company buys a long-term asset by issuing a long-term notes payable |
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Term
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Definition
Cash flows from operating activities
Net income |
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Term
| Capital Acquisitions Ratio |
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Definition
Cash flows from operating activities
cash paid from ppe |
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Term
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Definition
| COGS + (ΔIncome Tax- ΔA/P) |
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Term
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Definition
| Income Operating Expenses - ΔAccrued Liabilities |
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Term
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Definition
| Income Tax Expense- ΔIncome Tax Payable |
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Term
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Definition
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Term
| Payment of Cash Dividends |
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Definition
| Net Income- ΔRetained Earnings |
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Term
| Collection from Customers |
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Definition
Sales + Accounts Recievable
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Term
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Definition
| Beginning+Service Rev.-Cash Collected=Ending |
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Term
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Definition
| Other Operating- ΔAccrued Liabilities+ ΔPrepaid |
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Term
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Definition
Total Overhead Cost
Cost driver for business |
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Term
| Manufacturing Overhead Rate Formula |
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Definition
Total estimated manufacturing overhead costs
total estimated quantity of the manufacturing overhead allocation base |
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