Reading the Cash Flow Statement

Overview/Description
 The learner will receive a line-by-line explanation of cash flow activities, showing how the Cash Flow Statement relates to the Income Statement and Balance Sheet.

Target Audience
 This series is targeted specifically for business managers, financial professionals, and other business professionals who have the need to understand financial statements.

Expected Duration
2 hours

Lesson Objectives:

Operating Activities

  • recognize the value of a Cash Flow Statement for providing insight into how a company's profit is being used.
  • determine the cash flow from profit-making operations, given information from an Income Statement and a Balance Sheet.
  • distinguish between a cash basis method and an accrual basis method of reporting financial statements.

    • Financing and Investing Activities

  • recognize the value of a Cash Flow Statement for providing insight into how a company funds financing and investing activities.
  • determine the cash flow from investing activities, given information from an Income Statement, and a Balance Sheet.
  • determine the cash flow from financing activities, given information from an Income Statement, and a Balance Sheet.

    • Changes in Cash Flow Activity

  • recognize the value of using the Cash Flow Statement to analyze a company's state of growth.
  • identify measures that minimize the impact growth has on cash flow.
  • identify measures that minimize the impact a decline has on cash flow.

    • Course Number: FIN0113