Accounting-Statement of Cash Flows

Name: Accounting-Statement of Cash Flows
Rating: 4.1 (374 reviews)

Unlocking the Secrets of Cash Flow Statements: Mastering Construction, Analysis, and Interpretation

Created byRobert (Bob) Steele

Last updated 12/2022

English

English [Auto],

What you'll learn

Explain the purpose and significance of the statement of cash flows in financial reporting, and how it complements the balance sheet and income statement.
Identify and describe the key components of a statement of cash flows, including cash flows from operating activities, investing activities, and financing activ
Demonstrate the step-by-step process of creating a statement of cash flows using accrual accounting concepts, ensuring accuracy and completeness.
Apply accrual accounting principles to analyze and interpret cash flows, enabling you to make informed financial decisions and assessments.
Differentiate direct and indirect methods of constructing cash flows from operations section.
Construct a worksheet as a tool to facilitate the creation of a statement of cash flows, ensuring efficient and error-free preparation.
Create a statement of cash flows using the indirect method, meticulously documenting the cash flows from operating, investing, and financing activities.
Develop a statement of cash flows using the direct method, providing a detailed breakdown of cash flows from operating, investing, and financing activities.
Report non-cash investing and financing activities accurately, capturing their impact on the statement of cash flows.
Analyze cash flow statements for insights on liquidity, solvency, and cash management.

Course content

8 sections • 81 lectures • 9h 31m total length

Introduction4:27
Explore the statement of cash flows, its direct and indirect methods, and the course structure with practical exercises, Excel worksheets, and multiple choice questions.
PDF-10 Statement of Cash Flows Introduction0:08
Explore the introduction to the statement of cash flows, supported by a downloadable pedia file that complements the instructional video.
10 Statement of Cash Flows Introduction5:38
Learn how the statement of cash flows complements the income statement and balance sheet by revealing cash sources, uses, and changes over time, including cash equivalents.
10 Multiple Choice8:08
Explore multiple-choice questions on the statement of cash flows, including cash equivalents and the classification of cash flows into operating, investing, and financing activities.
10 Discussion Question
Accounting Comic Break0:15
Use a humorous accounting break to illuminate the statement of cash flows and core cash flow concepts.

2 Classification of Cash Flows and Thought Process0:57
Explore cash flow classifications—operations, investing, financing—using thought processes to categorize flows and relate accrual and cash-based systems to the statements.
PDF-20 Classification of Cash Flows0:08
Learn the classification of cash flows in accounting, supported by a downloadable pedia file as a supplement to the instructional video.
20 Classification of Cash Flows11:30
Classifies cash flows into operating, investing, and financing activities, linking cash basis income to the balance sheet. Identify inflows and outflows from sales, property, plant and equipment, investments, and dividends.
PDF-30 Cash Flow Category Through Process0:08
Access a downloadable pedia file to supplement the instructional video for the cash flow category through process in the accounting statement of cash flows course.
30 Cash Flow Category Thought Process8:59
Think through cash flow category decisions by analyzing balance sheet changes and common journal entries to classify operating, investing, or financing activities for the statement of cash flows.
30 Multiple Choice9:59
review multiple choice questions on the statement of cash flows, using journal entries and elimination to classify investing, financing, and operating activities, including dividends and income statement considerations.
20 Discussion Question
Accounting Comic Break 20:15
Engage with accounting concepts through a comic break focused on the statement of cash flows.

3 Statement of Cash Flows Outline & Resources Needed for Construction0:39
Outline the statement of cash flows and identify the resources and tools needed to construct it, clarifying the step-by-step process for building the statement.
PDF-40 Statement of Cash Flow Outline0:08
Downloadable pedia file supplements the instructional video for the statement of cash flows, providing extra context for the course material.
40 Statement of Cash Flow Outline10:33
Examine the statement of cash flows with operating, investing, and financing activities, using a comparative balance sheet worksheet to convert differences into net cash and tie to the balance sheet.
PDF-50 Statement of Cash Flow Requirements0:08
Explore pdf-50 statement of cash flow requirements and access a downloadable pedia file that serves as a supplement to the instructional video.
50 Statement of Cash Flow Tools For Completion5:11
Learn to complete a cash flow statement using a comparative balance sheet for prior and current periods, an income statement, and GL details to verify equipment changes, dividends, and depreciation.
PDF-60 Cash Flow Strategy0:08
Access a downloadable pedia file to supplement the instructional video on cash flow strategy, enhancing understanding of the course material.
60 Statement of Cash Flow Strategy6:56
Explore strategies for interpreting the statement of cash flows by analyzing a comparative balance sheet worksheet, understanding the change in cash, and back into cash flow via the accounting equation.
20 Multiple Choice8:24
Practice key cash flow classifications through multiple-choice questions on operating, investing, and financing activities, including sales of goods, equipment purchases, stock issuance, and interest payments.
30 Discussion Question
Accounting Comic Break 30:15
Engage with accounting through a comic break focused on the statement of cash flows in this course.

4 Direct Method Vs Indirect Method0:46
Compare and contrast the direct method and the indirect method for cash flows from operations. Learn how to construct the statement of cash flows using either method.
PDF-70 Direct Method vs. Indirect Method Overview0:08
Explore direct method vs indirect method overview for the statement of cash flows, with a downloadable pedia file as a supplement to the instructional video.
70 Statement of Cash Flows Direct Method Vs Indirect Method7:12
Compare the direct and indirect methods for operating activities in the cash flow statement, noting net income is reconciled to cash from operations while investing and financing stay the same.
40 Multiple Choice6:54
Practice multiple-choice questions on the statement of cash flows, classifying cash flows into operating, investing, and financing activities, and analyzing wages payments and loan receipts.
40 Discussion Question
Accounting Comic Break 40:15
Explore the accounting statement of cash flows through accounting comic break 4, blending humor with essential cash flow topics.

5 Create Statement of Cash Flows - Indirect Method0:56
Create a statement of cash flows using the indirect method. Build a worksheet and study the components with downloadable Excel workbook featuring an answer tab and a pre-formatted data-entry tab.
PDF-80 Indirect Method Worksheet0:08
Access a downloadable pedia file as a supplement to the instructional video for the pdf-80 indirect method worksheet in the accounting statement of cash flows course.
80 Statement of Cash Flow Indirect Method Worksheet10:50
Create an indirect method worksheet from a comparative balance sheet and income statement to prepare the statement of cash flows, converting to a debit/credit format and analyzing changes.
PDF-90 Indirect Method Cash & Net Income0:08
Access a downloadable pedia file that supplements the instructional video to explore the pdf-90 indirect method for cash and net income.
90 Statement of Cash Flow Indirect Method Cash & Net Income7:03
Build the statement of cash flows using the indirect method, focusing on cash and net income with a comparative balance sheet worksheet, then reconcile to the balance sheet.
PDF-100 Adj to Reconcile NI to Cash from Operations0:08
Learn how to reconcile NI to cash from operations using pdf-100 adj, aided by a downloadable pedia file that supplements the instructional video.
100 Statement of Cash Flow Indirect Method Adjustments to Reconcile Net Income t7:25
Learn to reconcile net income to net cash from operating activities using the indirect method, focusing on depreciation, accumulated depreciation changes, and the non-cash effects of equipment sales.
PDF-110 Indirect Method - Change In AR0:08
Access a downloadable pedia file to supplement the instructional video for the indirect method, focusing on change in accounts receivable within the cash flows course.
110 Statement of Cash Flow Indirect Method Change In Accounts Receivable10:17
Explore how the indirect method builds the cash flow statement from the comparative balance sheet by analyzing accounts receivable and other current assets and liabilities.
PDF-120 Indirect Method - Change In Inventory0:08
Explore the indirect method's treatment of change in inventory, with a downloadable pedia file to supplement the instructional video.
120 Statement of Cash Flow Indirect Method Change In Inventory6:39
Learn how to determine operating cash flows using the indirect method by analyzing the change in inventory and accounts receivable from a comparative balance sheet.
PDF-130 Indirect Method - Change In Prepaid Exp0:08
Explore the indirect method for the statement of cash flows, focusing on change in prepaid expenses, and access a downloadable pedia file as a supplement to the instructional video.
130 Statement of Cash Flow Indirect Method Change in Prepaid Expense3:52
Analyze how to construct cash flows from operations using the indirect method, focusing on changes in prepaid expenses within a condensed comparative balance sheet and a worksheet.
PDF-140 Indirect Method - Change In Accounts Payable0:08
Access a downloadable pedia file for the PDF-140 indirect method lecture on change in accounts payable, complementing the cash flow instruction video.
140 Statement of Cash Flow Indirect Method Change In Accounts Payable10:16
Use the indirect method on the cash flows statement to analyze accounts payable and current assets and liabilities with a comparative balance sheet, yielding net cash from operating activities.
PDF-150 Investing Activities - Cash Paid for Equipment0:08
Explore investing activities in accounting by examining cash paid for equipment, and access a downloadable pedia file as a supplement to the instructional video.
150 Statement of Cash Flow Investing Activities Cash Paid for Purchase of Equip8:15
Analyze investing activities by examining the purchase of equipment, using the comparative balance sheet and statements to adjust cash flows and reconcile equipment differences in the cash flow statement.
PDF-160 Financing Activities - Cash borrowed from note0:08
Access a downloadable pedia file that supplements the instructional video for the financing activities topic, including cash borrowed from note.
160 Statement of Cash Flow Financing Activities Cash Borrowed on Notes7:29
Explore how financing activities affect the statement of cash flows by analyzing notes payable, borrowed cash, and the journal entries that separate financing from operating and investing activities.
PDF-170 Financing Activities - Cash from issuing stock0:08
Explore financing activities and cash from issuing stock, supported by a downloadable pedia file that supplements the instructional video.
170 Statement of Cash Flow Financing Activities6:45
Analyze financing activities in the cash flow statement by examining stock issuance, common stock and paid-in capital, and how par value and journal entries link cash, equity, and balance-sheet reconciliation.
PDF-180 Cash Flow Adjustments0:08
Explore pdf-180 cash flow adjustments and use the downloadable pedia file as a supplement to the instructional video.
180 Statement of Cash Flow Adjustments18:14
Learn to finalize a cash flow statement by applying final adjustments and journal entries, adjust net income and depreciation, and classify financing, investing, and operating activities.
PDF-16.2 Cash Flow0:08
Access a downloadable pedia file to supplement the instructional video, enhancing your understanding of cash flow concepts covered in this lecture.
1600.10 Creating a Statement of Cash Flow-Indirect Method-Accounting%2C financia49:34
Learn to create a cash flow statement using the indirect method, converting accrual to cash, and building a balanced, error-checking process with operating, investing, and financing sections.
Excel Download0:05
Provide a downloadable Excel worksheet with the next presentation. Use this resource to practice cash flow concepts in the course.
Worksheet-40 Cash flow statement indirect method part15:04
Learn the indirect method for the statement of cash flows, compare it with the direct method, and build a worksheet to track beginning and ending balances and the cash change.
Worksheet-50 Cash flow statement indirect method part 2%2C15:12
Learn the indirect cash flow method by adjusting net income for changes in accounts receivable, inventory, prepaid expenses, depreciation, and accounts payable, and classify equipment purchases as investing activities.
Worksheet-60 Cash flow statement indirect method part 3%2C15:16
Apply the indirect method to the cash flow statement, classifying operating, investing, and financing impacts while tracing net income, accounts payable, notes payable, dividends, and depreciation to the balance sheet.
Worksheet-70 Cash flow statement indirect method Part 4%2C14:27
Explore the indirect method for a cash flow statement by adjusting depreciation, recording equipment sale losses, and balancing investing and financing activities through journal entries.
50 Multiple Choice7:12
Explore cash flow classifications through multiple-choice questions, identifying which items belong to operating, investing, or financing activities and applying journal-entry reasoning to equipment, dividends, intangibles, securities, and loans.
50 Discussion Question
Accounting Comic Break 50:15
Explore the statement of cash flows through an accounting comic break, reinforcing key ideas about cash movements in business.

6 Create Statement of Cash Flows - Direct Method1:12
Create the statement of cash flows using the direct method, focusing on cash flows from operations and showing how investing and financing activities fit together, with an accompanying Excel workbook.
PDF-190 Direct Method0:08
Access the PDF-190 direct method lecture with a downloadable pedia file that serves as a supplement to the instructional video.
190 Statement of Cash Flow Direct Method16:18
Learn the direct method for the statement of cash flows, converting accrual to cash by detailing cash received from customers, cash paid for merchandise, equipment, and notes payable.
Excel Download0:05
Access and download the Excel worksheet for the next presentation to practice with the cash flow topics in this accounting course.
190 Worksheet Direct Method Worksheet Stmt of Cash Flow17:03
Build a direct method statement of cash flows from a worksheet, using a two-period comparative balance sheet and income statement to minimize errors with step-by-step checkpoints.
190.10 Worksheet Direct Method Cash from Operations Stmt of Cash Flow19:29
Construct the cash flow statement with the direct method using a worksheet that converts accrual figures to cash and classifies activities as operating, investing, and financing.
190.20 Worksheet Direct Method Cash from Investing Act Stmt of Cash Flow8:47
Explore converting the income statement to cash flow via the direct method, focusing on investing activities like equipment purchases and sales, depreciation and gains that affect the cash balance.
190.30 Worksheet Direct Method Cash from financing Act Stmt of Cash Flow12:39
Apply the direct method to complete the statement of cash flows, classifying financing activities such as notes payable, borrowing, dividends, and stock transactions using a worksheet.
190.40 Worksheet Direct Method Finalize Act Stmt of Cash Flow22:25
Combine the direct method to finalize the statement of cash flows, drill down equipment and notes payable, and reconcile operating, investing, and financing activities to ending cash.
60 Multiple Choice13:42
Explore key concepts of the statement of cash flows through practical multiple-choice questions, covering operating, investing, financing activities, the indirect method, and non cash financing and investing activities.
60 Discussion Question
Accounting Comic Break 60:15
Explore the statement of cash flows and key accounting concepts through an accounting comic break, reinforcing cash flow analysis within the accounting course.

7 Non Cash Investing & Financing Activities0:23
Explore non-cash investing and financing activities and their impact on the cash flow statement, and learn how to report these activities.
PDF-200 Non Cash Investing & Financing0:08
Access a downloadable pedia file to supplement the instructional video on non-cash investing and financing for cash flow accounting.
200 Statement of Cash Flow Non Cash Items6:23
Analyze non-cash items linked to the statement of cash flows, including note-financed asset purchases, equity- or debt-financed acquisitions, capital leases, and related disclosures.
70 Multiple Choice14:35
Explore the statement of cash flows, distinguishing financing activities and the indirect method that reconciles net income to net cash from operating activities.
70 Discussion Question
Accounting Comic Break 70:14
Explore the statement of cash flows through accounting comic break 7, blending humor with core concepts from the accounting course.

8 Definitions & Key Terms0:28
Explore definitions and key terms related to the statement of cash flows, with contextual explanations that connect terms to course topics.
Financing Activities Definition - What are Financing Activit2:23
Define financing activities as transactions with owners and creditors that obtain cash from issuing debt, repay borrowed funds, issue stock, or pay dividends, within the cash flow statement.
Indirect Method Definition - What is Indirect Method%3F3:32
Define the indirect method by starting with net income and adjusting for noncash items to obtain net cash from operating activities on the statement of cash flows.
Investing Activities Definition - What are Investing Activit3:52
Define investing activities as transactions involving purchasing and selling long-term assets, notes receivable, and other investments, and explain their treatment in the statement of cash flows.
Operating Activities Definition - What are operating activit2:30
Define operating activities as the production, purchase, and sale of merchandise and services, including administration expenses, and explain their role in the cash flow statement via indirect and direct methods.
80 Multiple Choice10:51
Explore how non-cash investing and financing activities are disclosed in notes or schedules, and compare the direct and indirect methods of the statement of cash flows.
80 Discussion Question
Accounting Comic Break 80:14
Explore the statement of cash flows through accounting comic break 8, delivering a concise, engaging overview of cash flow concepts within the course.

Requirements

Basic Understanding of Financial Statements: Familiarity with balance sheets, income statements, and basic financial ratios will provide a solid foundation for learning cash flow statements.
Knowledge of Accrual Accounting: A basic understanding of accrual accounting principles and concepts will help in comprehending the relationship between accrual-based financial reports and cash flow statements.
Familiarity with Financial Terminology: Prior exposure to financial terms such as revenue, expenses, assets, liabilities, and equity will facilitate a smoother understanding of the course material.
Motivation to Learn: A genuine interest in understanding cash flow statements and their significance in financial analysis is essential to fully engage with the course material and achieve the learning objectives.

Description

This comprehensive course focuses on mastering the creation and analysis of the statement of cash flows, a crucial aspect of financial reporting. It delves into the very heart of cash flow statements, illuminating its purpose, uses, and the vital accrual accounting concepts needed for its creation.

Starting with an introduction to cash flow statements, the course equips learners with the skills to understand and construct these statements from accrual financial reports. It systematically breaks down the components of cash flows, including operating, investing, and financing activities, providing a clear thought process for determining where specific cash flows belong.

The course lays out detailed requirements for creating a cash flow statement and imparts practical strategies to minimize errors and optimize time spent on construction. Key differentiating factors between the direct and indirect methods of constructing the cash flows from operations section are thoroughly compared and contrasted, bolstering your understanding of both approaches.

Learners are guided through the step-by-step construction of a cash flow statement using the indirect method, and subsequently, the direct method, offering a hands-on learning experience. Furthermore, it covers the reporting of non-cash investing and financing activities, giving learners a comprehensive view of all aspects of cash flow statements.

The course includes several downloadable resources, including PDF files for offline reference, preformatted Excel practice files for honing skills on Excel basics and adjusting processes, and multiple-choice and short calculation practice questions to help improve test-taking skills. Discussion questions also provide an opportunity for learners to interact with peers, enhancing the learning process by viewing the topic from various perspectives.

The course instructor is a seasoned professional with deep technical experience in accounting concepts and software. As a certified public accountant, chartered global management accountant, and certified post-secondary instructor with a Master's in Taxation and a wealth of curriculum development experience, the instructor brings a blend of practical expertise and teaching acumen to this course.

Whether you're an accounting student, an aspiring accountant, a seasoned professional, or a business owner seeking to understand your company's financial health better, this course offers an in-depth understanding of cash flow statements that will prove invaluable in your journey.

Who this course is for:

Accounting and Finance Professionals: Accountants, financial analysts, and professionals working in finance roles can deepen their knowledge of cash flow statements, enabling them to perform more accurate financial analysis and make informed business decisions.
Business Owners and Entrepreneurs: Individuals running their own businesses or involved in entrepreneurial endeavors can benefit from understanding cash flow statements, as it provides insights into their company's liquidity, cash management, and financial health.
Accounting Students: Undergraduate or graduate students studying accounting or finance can gain a comprehensive understanding of cash flow statements, strengthening their theoretical knowledge and practical application in financial reporting.
Aspiring Accountants: Those aspiring to pursue a career in accounting or finance can acquire essential skills in cash flow statement analysis, enhancing their marketability and readiness for professional roles.
Investors and Stakeholders: Investors, shareholders, and other stakeholders interested in evaluating the financial performance and viability of companies will find this course valuable in analyzing cash flow statements for investment and decision-making purposes.
Lifelong Learners: Curious learners interested in deepening their knowledge of financial statements and gaining insights into the cash flow aspect of business finance will find this course engaging and informative.

Accounting-Statement of Cash Flows

What you'll learn

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Course content

Introduction5 lectures • 19min

Classification of Cash Flows and Thought Process7 lectures • 32min

Statement of Cash Flows Outline & Resources Needed for Construction9 lectures • 32min

Direct Method vs Indirect Method5 lectures • 15min

Create Statement of Cash Flows - Indirect Method32 lectures • 3hr 37min

Create Statement of Cash Flows - Direct Method11 lectures • 1hr 52min

Non Cash Investing & Financing5 lectures • 22min

Definitions & Key Terms7 lectures • 24min

Requirements

Description

Who this course is for: