Course Description
In the eleventh and final lesson of our "Accounting 101" series, "Statement of Cash Flows," you will learn to navigate the third key financial statement, which often confounds even trained accountants. This statement reconciles the income statement and balance sheet by illustrating how cash moves from the prior period’s ending balance to the current period’s balance. It accounts for cash received and spent in operations, as well as other cash flows from investing, financing, and long-term asset activities. By the end of the course, you will be equipped to analyze any company's statement of cash flows with confidence.
By the end of this course, you will able to answer questions such as:
• Why are investors interested in seeing a company’s operating cash flow?
• How do aggressive accounting policies affect the quality of earnings?
• How can a statement of cash flows provide insight into the integrity of company management?
Statement of Cash Flows Overview
The Three Sections of the Statement of Cash Flows
Cash Flow from Operating Activities Overview
Quality of Earnings
Adjusting for Non-Cash Transactions
Adjusting for the Change in Operating Assets and Liabilities
Calculating the Change in Operating Assets and Liabilities
Extracting Actual Cash Flow from Operations
Relationship of Asset and Liability Movements with Cash Flow
Cash Flow from Operating Activities Calculation
Cash Flow from Investing Activites Overview and Calculation
Cash Flow from Financing Activites Overview and Calculation
Total Change in Cash Flow Calculation
Course Review
Course Quiz
