cash flows from operating activities-indirect method
free cash flow
The amount of operating cash flow remaining after replacing current productive capacity and maintaining current dividends.
amortization of patent
added
decrease in merchandise inventory
added
decrease in notes receivable due in 60 days from customers
added
decrease in prepaid expenses
added
depreciation of fixed assets
added
direct method
A method of reporting the cash flows from operating activities as the difference between the operating cash receipts and the operating cash payments.
indirect method
A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.
statement of cash flows
A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.
cash flows from investing activities
The section of the statement of cash flows that reports cash flows from transactions affecting investments in noncurrent assets.
cash flows from financing activities
The section of the statement of cash flows that reports cash flows from transactions affecting the equity and debt of the business.
cash flow per share
The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.
cash flows from operating activities
The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.
increase in accounts payable
added
increase in notes payable due in 120 days to vendors
added
increase in salaries payable
added
loss on retirement of long-term debt
added
gain on disposal of fixed assets
deducted
increase in accounts receivable
deducted
increase in merchandise inventory
deducted
increase in prepaid expenses
deducted