No. of Recommendations: 0
The statement of cash flows are from the balance sheet. What you look at is all items that effect cash in the company. Examples are accumulated depreciation from balance sheet is added back into statement of cash flows. all expenses, income tax, pre paids, ect, also, any gains or losses on sale of investments are included back in. example, a gain on sale of investments are deducted from cash flow. The cash flow statement involves all those items effected by the use of cash for the company.This is to show cash from operating, investment and finacing transactions by the company. accounts receivables if lower than previous month or period is added back into cash flow, acct rec increases are deducted from it. acct payables are added back in if the acct payable increases assuming that the payables have not been paid yet this effects cash. There are many more items that go into it, remember all items that have an effect on cash are in the statement of cash flows. I hope i helped a little. tom simakis
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.