Financial Accounting - Chapter 13: Statement of Cash Flows
free cash flow
The amount of operating cash flow remaining after replacing current productive capacity and maintaining current dividends.
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 flows from operating activities
The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.
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 flow per share
Normally computed as cash flow from operations per share.
Cash flows from from issuing stock
Cash inflows from Financing Activities
Cash flows from issuing long-term liabilities
Cash inflows from Financing Activities
Cash flows from sale of property, plants, and equipment
Cash inflows from Investing Activities
Cash flows from the sale of investments
Cash inflows from Investing Activities
Cash flow from providing services
Cash inflows from Operating Activities
Cash flow from sale of products
Cash inflows from Operating Activities
Cash flows to pay dividends to shareholders
Cash outflows from Financing Activities
Cash flows to repay long-term liabilities
Cash outflows from Financing Activities
Cash flows to repurchase common stock (treasury stock)
Cash outflows from Financing Activities
Cash flows to buy property, plant, and equipment
Cash outflows from Investing Activities
Cash flows to purchase investments
Cash outflows from Investing Activities
Cash flows to pay employees
Cash outflows from Operating Activities
Cash flows to pay taxes
Cash outflows from Operating Activities
Cash flows when purchasing inventory
Cash outflows from Operating Activities