Statement of Cash Flows: Preparation, Presentation, and Use

Chapter 1 1-1

Statement of Cash Flows Summary of Presentation Requirements 1-1

What Is a Statement of Cash Flows? 1-2

Fundamentals of Cash Flow Presentation 1-3

Cash Flow Reporting Guidance 1-6

Classification   1-9

Preparing a Statement of Cash Flows    1-16

Illustration of Direct and Indirect Methods    1-19

Comprehensive Exercise    1-22

Appendix A 1-27

Supplemental Problems   1-27

Chapter 2 2-1

Cash Equivalents and Gross Versus Net Presentation: Issues and Examples 2-1

Presentation Fundamentals  2-2

Cash Equivalents 2-7

Gross Versus Net Cash Flow Reporting 2-14

Comprehensive Exercises   2-20

Appendix A 2-23

Supplemental Problems   2-23

Chapter 3  3-1

Presentation Issues: Investing, Financing, and Noncash Activities    3-1

Issues Related to Classification 3-3

Installment Sales and Purchases 3-10

Addressing Diversity in Classification Decisions 3-15

Reporting Noncash Transactions  3-17

Issues Related to Noncash Transactions 3-21

Comprehensive Exercises  3-23

Appendix A 3-27

Supplemental Problems 3-27

Chapter 4  4-1

Operating Section Presentation Direct or Indirect? 4-1

Operating Section Presentation 4-2

Current Reporting Requirements 4-8

Advantages of Alternative Presentations 4-10

Direct Method Costs    4-15

The Indirect Direct Approach 4-16

What Is Next?  4-19

Illustrative Indirect and Direct Method Statements 4-20

Comprehensive Exercises  4-28

Appendix A 4-33

Supplemental Problem 4-33

Chapter 5  5-1

Operating Section Reporting Issues 5-1

Lack of Line Item Reconciliation 5-2

Using or Misusing the Cash From Operations Total 5-8

Operations: Miscellaneous Classification Items   5-11

Business Combinations and Segment Dispositions 5-17

Comprehensive Illustration 5-24

Summary of Current Statement of Cash Flows Requirements 5-30

Comprehensive Exercises   5-31

Appendix A 5-43

Supplemental Problems   5-43

Chapter 6 6-1

Ongoing Developments in the Statement of Cash Flows Reporting   6-1

IAS 7: Statement of Cash Flows 6-2

Proposals for Revisions to Financial Statement Preparation for Not-for-Profit Entities    6-4

Proposals for Revisions to Financial Statement Preparation for Business Entities   6-5

Statement Classification 6-7

Modified Classifications on the Statement of Cash Flows 6-9

Statement of Cash Flows: Other Tentative Decisions 6-13

Analysis of Changes in Assets and Liabilities 6-16

Glossary Glossary 1

Index  Index 1

Solutions Solutions 1

Chapter 1 Solutions 1

Chapter 2 Solutions 12

Chapter 3 Solutions 16

Chapter 4 Solutions 22

Chapter 5 Solutions 26

Chapter 6 Solutions 45