The statement of cash flows is the least used of the financial statements; it not be issued at all for internal financial reporting purposes. The recipients of financial statements seem to be mostly concerned with the profit information on the income statement, and to a lesser degree, with the financial position information on the balance sheet. Nonetheless, the statement of cash flows can provide valuable information, especially when combined with the other financial statements.
Statement of Cash Flows: Preparation and Presentation describes the objectives of the statement of cash flows, the different presentation methods that can be used, and how to prepare it. The course also notes the presentation treatment of many special situations, data collection issues, and the disclosure requirements for related information. In addition, you'll learn from several key cash flow analyses, including how to interpret the statement of cash flows.
Upon successful completion of this course, participants will be able to:
- Identify the classifications used within the statement of cash flows.
- Note the differences between the direct and indirect methods of presentation.
- Recognize the concepts of grouping and clustering information in the statement of cash flows.
- Note the origins of the information appearing in the statement of cash flows.
- Identify the treatment of acquisitions and foreign currency events in the statement of cash flows.
- Recognize the calculations used to compile ratios related to cash flows and the situations in which these measurements are most useful.
Table of Contents
Chapter 1 – The Statement of Cash Flows
Overview of the Statement of Cash Flows
The Direct Method
The Indirect Method
Illustration of the Preparation of a Statement of Cash Flows
Foreign Currency Cash Flows
Gains and Losses
Interest and Dividend Receipts
Non-Reportable Cash Events
Non-Use of Cash Equivalents
Receivables as Collateral
Sale of Receivables
Securities Recorded at Fair Value
Advantages of the Statement of Cash Flows
General Advantages of the Statement of Cash Flows
Advantages of the Direct Method of Presentation
Advantages of the Indirect Method of Presentation
Disadvantages of the Statement of Cash Flows
Data Collection Issues
Chapter 1 – Review Questions
Chapter 2 – Cash Flow Analysis
Overview of Cash Flow Measurements
Free Cash Flow
Cash Flow per Share
Cash Flow Return on Sales
Cash Flow Return on Assets
Cash Turnover Ratio
Cash Reinvestment Ratio
Interpreting the Statement of Cash Flows
Examination of Cash Flows from Operating Activities
Examination of Cash Flows from Investing Activities
Examination of Cash Flows from Financing Activities
Chapter 2 – Review Questions
Review Question Answers and Rationales
Choose Your Preferred Format
Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.
Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.
Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.
Back to top