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Statement of Cash Flows - An Overview


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Statement of Cash Flows - An Overview
  

Statement of cash flows

Statement of cash flows reports changes in cash flows from the following activities
 
1. Cash flows from operating activities
2. Cash flows from investing activities
3. Cash flows from financing activities
   

Statement of cash flows

Structure of statement of cash flows
    
   Net cash provided by (used for) operating activities
   Net cash provided by (used for) investing activities
   Net cash provided by (used for) financing activities

   Net increase (decrease) in cash
   Cash, at the beginning of period
   Cash, at the end of period
      

Statement of cash flows

An example
 
   Net cash provided by (used for) operating activities   $200,000
   Net cash provided by (used for) investing activities   $(80,000)
   Net cash provided by (used for) financing activities   $150,000

   Net increase (decrease) in cash                            $270,000
   Cash, at the beginning of period                         $2,000,000
   Cash, at the end of period                                $2,270,000
      

Direct method, indirect method

Cash flows from "operating" activities can be reported using one of the following methods
 
1. Direct method
2. Indirect method
  
Cash flows from "investing" activities are always reported using direct method
 
Cash flows from "financing" activities are always reported using direct method
  

Cash flows from operating activities, direct method

Direct method
  
Cash flows from operating activities
   Cash receipts
      received from sales of goods
  
   Cash payments
     paid for inventory purchases
     paid to employees
     paid for interest
     paid for taxes
     paid for other expenses
  
   Net cash provided by operating activities
  

Cash flows from operating activities, indirect method

Indirect method
 
Cash flows from operating activities
   Net income
      + noncash expenses
      + decreases in current assets
       - increases in current assets
      + increases in current liabilities
       - decreases in current liabilities
       - gain on sale of property, plant and equipment
      + loss on sale of property, plant and equipment     
  
   Net cash provided by operating activities
  

   



 
 

Cash flows from investing activities

Investing activities
 
   1. sale of property, plant and equipment
   2. purchase of property, plant and equipment
   3. collection of loans from other companies
   4. providing loans to other companies
   5. sale of investments in debt and equity securities
   6. purchase of investments in debt and equity securities
    
   Cash flows from investing activities
      sale of property, plant and equipment
      collection of loans from other companies
      sale of investments in debt and equity securities
      
   Cash flows for investing activities    
      purchase of property, plant and equipment
      providing loans to other companies
      purchase of investments in debt and equity securities
    
   Net cash provided by (used for) investing activities
  

Cash flows from financing activities

Financing activities
 
   1. issuance of stock
   2. repurchase of stock
   3. dividends to stockholders
   4. issuance of long-term debt
   5. repayment of long-term debt
 
   Cash flows from financing activities
      issuance of stock
      issuance of long-term debt
    
   Cash flows for financing activities    
      repurchase of stock
      dividends to stockholders
      repayment of long-term debt
  
   Net cash provided by (used for) financing activities
  

Examples of statement of cash flows

Examples of Statement of Cash Flows

Amazon.com, Inc. 
Amazon.com, Inc.  Statement of Cash Flows
 
Chevron Corporation
Chevron Corporation  Statement of Cash Flows

Cisco Systems, Inc.
Cisco Systems, Inc.  Statement of Cash Flows

Google, Inc.
Google, Inc.  Statement of Cash Flows

Intel Corporation
Intel Corporation  Statement of Cash Flows
 
Hewlett-Packard Company
Hewlett-Packard Company  Statement of Cash Flows
 
PepsiCo, Inc.
PepsiCo, Inc.  Statement of Cash Flows
 
Macy's, Inc.
Macy's, Inc.  Statement of Cash Flows
 
Microsoft Corporation
Microsoft Corporation  Statement of Cash Flows

Procter & Gamble Company
Procter & Gamble Company  Statement of Cash Flows
  

        





U.S. GAAP by Codification Topic 
 
 105  GAAP Hierarchy 
 105  GAAP History 

 205  Presentation of Financial Statements 
 205-20 Discontinued Operations 
 210  Balance Sheet 
 210-20 Offsetting 
 220  Comprehensive Income 
 225  Income Statement 
 225-20 Extraordinary and Unusual Items 
 230  Statement of Cash Flows 
 250  Accounting Changes and Error Corrections 
 260  Earnings per Share 
 270  Interim Reporting
 
 310  Impairment of a Loan
 320  Investment Securities 
 320  Other-Than-Temporary Impairments, FSP FAS 115-2 
 320-10-05 Overview of Investments in Other Entities 
 320-10-35 Reclassification of Investments in Securities
 323-10 Equity Method Investments
 323-30 Investments in Partnerships and Joint Ventures 
 325-20 Cost Method Investments 
 330  Inventory

 340-20 Capitalized Advertising Costs 
 350-20 Goodwill 
 350-30 Intangibles Other than Goodwill 
 350-40 Internal-Use Software 
 350-50 Website Development Costs 
 360  Property, Plant and Equipment
 360-20 Real Estate Sales 
 
 410  Asset Retirement and Environmental Obligations 
 420  Exit or Disposal Cost Obligations 
 450  Contingencies 
 450-20 Loss Contingencies 
 450-30 Gain Contingencies
 480  Redeemable Financial Instruments 

 505-20 Stock Dividends, Stock Splits 
 505-30 Treasury Stock 

 605  SEC Staff Accounting Bulletin, Topic 13 
 605-25 Revenue Recognition - Multiple Element Arrangements 
 
 715-30 Defined Benefit Plans - Pension
 718  Share-Based Payment 
 730  Research and Development 
 730-20 Research and Development Arrangements 

 805  Business Combinations  
 810  Consolidation 
 810  Noncontrolling Interests 
 810  Consolidation of Variable Interest Entities, SFAS 167 
 
 815  Derivatives and Hedging Overview 

 820  Fair Value Measurements  
 820  Fair value when the markets are not active, FSP FAS 157-4
 825  Fair Value Option 

 830  Foreign Currency Matters 
 830-20 Foreign Currency Transactions 
 830-30 Translation of Financial Statements 
 835  Interest 
 835-20 Capitalization of Interest 
 835-30 Imputation of Interest 

 840  Leases 
 840-20 Operating Leases 
 840-30 Capital Leases 
 840-40 Sale-Leaseback Transactions
 845  Nonmonetary Transactions 

 855  Subsequent Events 
 860-20 Sale of Financial Assets, SFAS 166 
 860-50 Servicing Assets and Liabilities, SFAS 156 

 985-20 Costs of software to be sold  

 



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