会计英语_第四版_叶建芳09
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method or the indirect financing activities: method.
9
Let’s look at the Direct Method for preparing the Statement of Cash Flows.
YE SUN AccountingEnglish 10
a. b. c. d.
$900,000 $923,000 $947,000 $877,000
YE SUN AccountingEnglish 17
Direct Method Cash Paid for Merchandise
How much did Lug Lite pay for inventory in 1999?
+
Revenue, Accrual basis $800,000
Decrease in receivables
=
Revenue, Cash basis
–
Increase in receivables
=
12
YE SUN AccountingEnglish
Direct Method Cash Received from Customers The A/R balance was $40,000 on 1/1/99 and $52,000 on 12/31/99. If accrual sales revenue for 1999 was $800,000, what was cash basis revenue?
Purchases = COGS
{
+ Increase in inventory - Decrease in inventory
Step 2
Cash paid for merchandise = Purchases
{
+ Decrease in A/P - Increase in A/P
16
YE SUN AccountingEnglish
Direct Method Cash Received from Customers
Accrual basis revenue includes sales that did not result in cash inflows. Can be computed as: +
Decrease in receivables
$ #####
Cash flows from investing activities: The operating cash flows [List of individual inflows and outflows] section can be prepared either the direct Net cash provided (used) byusing investing activities ##### Cash flows from SUN AccountingEnglish [List of individual inflowsYEand outflows]
+
Revenue, Accrual basis$800,000
Decrease in receivables
=
Revenue, Cash basis $788,000
–Βιβλιοθήκη Baidu
$12,000 Increase in receivables
=
13
YE SUN AccountingEnglish
Now that we understand the process, let’s look at some simplified formulas for computing direct method cash flows.
Acquire plant assets. Purchase debt or equity investments. Make loans.
_
Cash Flows from Investing Activities
YE SUN AccountingEnglish
6
Financing Activities
Lesson 9
Statement of cash flows
YE SUN AccountingEnglish
1
Purpose of the Statement of Cash Flows
Provides information about the cash receipts and cash payments of a business entity during the accounting period. Helps investors with questions about the company’s:
YE SUN AccountingEnglish 8
Company Name Statement of Cash Flows Period Covered Cash flows from operating activities: [List of individual inflows and outflows] Net cash provided (used) by operating activities
Inflows from:
Short-term and long-term borrowing. Owners (for example, from issuing stock).
+
Outflows to:
Repayments of borrowed funds. Owners for dividends. Purchase treasury stock.
YE SUN AccountingEnglish 2
Company Name Statement of Cash Flows Period Covered Cash flows from operating activities: [List of individual inflows and outflows] Net cash provided (used) by operating activities Cash flows from investing activities: [List of individual inflows and outflows] Net cash provided (used) by investing activities Cash flows from financing activities: [List of individual inflows and outflows] Net cash provided (used) by financing activities Net increase (decrease) in Cash
Inventory, 1/1/99 Inventory, 12/31/99 COGS, 12/31/99 $ 130,000 $ 165,000 $ 900,000 A/P, 1/1/99 A/P, 12/31/99 $ 23,000 $ 35,000
a. b. c. d.
$900,000 $923,000Purchases = $900,000 + $35,000 $947,000 Cash Paid for Merchandise in 1999 $877,000 was $923,000.
=
Revenue, Cash basis
Revenue, Accrual basis
–
Increase in receivables
=
11
YE SUN AccountingEnglish
Direct Method Cash Received from Customers The A/R balance was $40,000 on 1/1/99 and $52,000 on 12/31/99. If accrual sales revenue for 1999 was $800,000, what was cash basis revenue?
$ #####
#####
##### $ #####
Cash (and equivalents) balance at beginning of period ##### Cash (and equivalents) balance at end of period $ #####
YE SUN AccountingEnglish 3
YE SUN AccountingEnglish
4
Operating Activities
Inflows from:
Sales to customers. Interest and dividends received.
Outflows to:
Suppliers of merchandise and services. Employees. Lenders for interest. Governments for taxes.
_
Cash Flows from Financing Activities
7
YE SUN AccountingEnglish
Cash and Cash Equivalents
Cash Equivalents
Cash
Currency
Short-term, highly liquid investments. Readily convertible into cash. So near maturity that market value is unaffected by interest rate changes.
Dividends Dividends = Received Revenue
{
+ Decrease in dividends receivable - Increase in dividends receivable
15
YE SUN AccountingEnglish
Direct Method Cash Paid for Merchandise Step 1
YE SUN AccountingEnglish 5
Investing Activities
Inflows from:
Selling investments or plant assets. Collecting of principal on loans.
+
Outflows to:
Direct Method Cash Paid for Merchandise
How much did Lug Lite pay for inventory in 1999?
Inventory, 1/1/99 Inventory, 12/31/99 COGS, 12/31/99 $ 130,000 $ 165,000 $ 900,000 A/P, 1/1/99 A/P, 12/31/99 $ 23,000 $ 35,000
Classification of Cash Flows The Statement of Cash Flows must include the following three sections: Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities
YE SUN AccountingEnglish 14
Direct Method Interest and Dividends Received
Interest Received Interest = Revenue
{
+ Decrease in interest receivable - Increase in interest receivable
Ability to generate positive cash flows. Ability to meet its obligations and to pay dividends. Need for external financing. Investing and financing transactions for the period.
9
Let’s look at the Direct Method for preparing the Statement of Cash Flows.
YE SUN AccountingEnglish 10
a. b. c. d.
$900,000 $923,000 $947,000 $877,000
YE SUN AccountingEnglish 17
Direct Method Cash Paid for Merchandise
How much did Lug Lite pay for inventory in 1999?
+
Revenue, Accrual basis $800,000
Decrease in receivables
=
Revenue, Cash basis
–
Increase in receivables
=
12
YE SUN AccountingEnglish
Direct Method Cash Received from Customers The A/R balance was $40,000 on 1/1/99 and $52,000 on 12/31/99. If accrual sales revenue for 1999 was $800,000, what was cash basis revenue?
Purchases = COGS
{
+ Increase in inventory - Decrease in inventory
Step 2
Cash paid for merchandise = Purchases
{
+ Decrease in A/P - Increase in A/P
16
YE SUN AccountingEnglish
Direct Method Cash Received from Customers
Accrual basis revenue includes sales that did not result in cash inflows. Can be computed as: +
Decrease in receivables
$ #####
Cash flows from investing activities: The operating cash flows [List of individual inflows and outflows] section can be prepared either the direct Net cash provided (used) byusing investing activities ##### Cash flows from SUN AccountingEnglish [List of individual inflowsYEand outflows]
+
Revenue, Accrual basis$800,000
Decrease in receivables
=
Revenue, Cash basis $788,000
–Βιβλιοθήκη Baidu
$12,000 Increase in receivables
=
13
YE SUN AccountingEnglish
Now that we understand the process, let’s look at some simplified formulas for computing direct method cash flows.
Acquire plant assets. Purchase debt or equity investments. Make loans.
_
Cash Flows from Investing Activities
YE SUN AccountingEnglish
6
Financing Activities
Lesson 9
Statement of cash flows
YE SUN AccountingEnglish
1
Purpose of the Statement of Cash Flows
Provides information about the cash receipts and cash payments of a business entity during the accounting period. Helps investors with questions about the company’s:
YE SUN AccountingEnglish 8
Company Name Statement of Cash Flows Period Covered Cash flows from operating activities: [List of individual inflows and outflows] Net cash provided (used) by operating activities
Inflows from:
Short-term and long-term borrowing. Owners (for example, from issuing stock).
+
Outflows to:
Repayments of borrowed funds. Owners for dividends. Purchase treasury stock.
YE SUN AccountingEnglish 2
Company Name Statement of Cash Flows Period Covered Cash flows from operating activities: [List of individual inflows and outflows] Net cash provided (used) by operating activities Cash flows from investing activities: [List of individual inflows and outflows] Net cash provided (used) by investing activities Cash flows from financing activities: [List of individual inflows and outflows] Net cash provided (used) by financing activities Net increase (decrease) in Cash
Inventory, 1/1/99 Inventory, 12/31/99 COGS, 12/31/99 $ 130,000 $ 165,000 $ 900,000 A/P, 1/1/99 A/P, 12/31/99 $ 23,000 $ 35,000
a. b. c. d.
$900,000 $923,000Purchases = $900,000 + $35,000 $947,000 Cash Paid for Merchandise in 1999 $877,000 was $923,000.
=
Revenue, Cash basis
Revenue, Accrual basis
–
Increase in receivables
=
11
YE SUN AccountingEnglish
Direct Method Cash Received from Customers The A/R balance was $40,000 on 1/1/99 and $52,000 on 12/31/99. If accrual sales revenue for 1999 was $800,000, what was cash basis revenue?
$ #####
#####
##### $ #####
Cash (and equivalents) balance at beginning of period ##### Cash (and equivalents) balance at end of period $ #####
YE SUN AccountingEnglish 3
YE SUN AccountingEnglish
4
Operating Activities
Inflows from:
Sales to customers. Interest and dividends received.
Outflows to:
Suppliers of merchandise and services. Employees. Lenders for interest. Governments for taxes.
_
Cash Flows from Financing Activities
7
YE SUN AccountingEnglish
Cash and Cash Equivalents
Cash Equivalents
Cash
Currency
Short-term, highly liquid investments. Readily convertible into cash. So near maturity that market value is unaffected by interest rate changes.
Dividends Dividends = Received Revenue
{
+ Decrease in dividends receivable - Increase in dividends receivable
15
YE SUN AccountingEnglish
Direct Method Cash Paid for Merchandise Step 1
YE SUN AccountingEnglish 5
Investing Activities
Inflows from:
Selling investments or plant assets. Collecting of principal on loans.
+
Outflows to:
Direct Method Cash Paid for Merchandise
How much did Lug Lite pay for inventory in 1999?
Inventory, 1/1/99 Inventory, 12/31/99 COGS, 12/31/99 $ 130,000 $ 165,000 $ 900,000 A/P, 1/1/99 A/P, 12/31/99 $ 23,000 $ 35,000
Classification of Cash Flows The Statement of Cash Flows must include the following three sections: Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities
YE SUN AccountingEnglish 14
Direct Method Interest and Dividends Received
Interest Received Interest = Revenue
{
+ Decrease in interest receivable - Increase in interest receivable
Ability to generate positive cash flows. Ability to meet its obligations and to pay dividends. Need for external financing. Investing and financing transactions for the period.