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Cash Flow Notes

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									Cash Flow
Cash Flow
   Tracks the flow of cash into operating,
    investing, and financing activities
Cash Flow Purposes
 Evaluate past practices
 Identify where cash originated
 Identify how cash was used
 Project future cash changes
 Measures liquidity
 Show ability to pay bills and loans
Cash Flow Categories
   Operating
    ◦   Income of the sale of goods and services
    ◦   Income for smaller items
    ◦   Payments to suppliers for goods and services
    ◦   Payments for labor and smaller items
    ◦   Depreciation
    ◦   Sale of non-current assets
Cash Flow Categories
   Investing
    ◦ Purchase of non-current assets
    ◦ Loans to suppliers or customers
   Financing
    ◦ Income from investors
    ◦ Payment of dividends
    ◦ Repayment of long-term loans

								
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