Cash flow statement tutorial. How does a cash flow statement work? How do cash balance and cash flow relate to each other? What is cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities? You will find all of these explained in this Finance Storyteller video, including an example of the cash flow statement for Shell (AMS: RDSA). The cash flow statement is one of the three main financial statements. As the cash flow statement explains how much cash has come in and gone out during a year, and what the sources and uses of this cash flow were, you could see the cash flow statement as an explanation of how the cash balance (one of the most important assets) has developed between two balance sheets. Cash is king. It is critical at every stage of a company’s lifecycle. When you open your own business, you need cash to get started. You will need cash to grow and expand. If a company runs out of cash to pay its bills, it’s game over. What you see in a cash flow statement should be a direct reflection of a company’s strategy. Is the company spending enough to build its unique and sustainable competitive advantage? Are customers willing to pay for the products and services that the company supplies? Is the company able to reward its investors for the risk they have taken, by paying a dividend? These and other questions can be answered by analyzing a cash flow statement. It’s nice to have the total numbers of the cash balance as well as the total net cash flow, but it doesn’t tell us much yet about what goes on inside the company. To get a more meaningful look, we have to drill a level deeper into cash flow. That’s why a cash flow statement is split into three sections. The first section will have the word “Operating” in it, the second “Investing”, the third “Financing”. Many companies will call the first section “Cash From Operating Activities” or CFOA, or a variation on that wording like “Cash Flow From Operations”. Cash From Operating Activities is roughly the cash inflow from customers paying the company minus the cash outflow of the company paying for purchases from suppliers, minus the cash outflow of salaries paid to employees, and minus the cash outflow of taxes paid to governments. For most mature companies in good health, the cash flow from operating activities is a net cash inflow. The second section is often called “Cash From Investing Activities”, or a variation on that wording. This is where Capital Expenditures (a cash outflow), acquisitions (a cash outflow) and divestments (a cash inflow) are recorded. Cash From Investing Activities tends to be a net cash outflow for most companies in most years. The third section is often called “Cash From Financing Activities”, or a variation on that wording. This one can go either way: a net cash inflow or a net cash outflow. Does the company need money and attract new debt to finance itself? Then there will be a cash inflow. Does the company have a lot of cash on its balance sheet and no plans to put that cash to any productive use? Then the company might be paying a dividend to shareholders, which is a cash outflow. If you are interested in a more in-depth look at the similarities between two very capital-intensive industries (oil and telecom), please check the blog article on my website: http://www.devroe.org/?p=80 Understanding cash flow is a key element of “getting the picture” of a company. As an investor, analyst, employee or supplier, it is advisable to understand both the actual numbers of past years, as well as the intent going forward. Related videos: Cash flow statement analysis Tesla 2016 through 2018 https://www.youtube.com/watch?v=49TxnoP4u8Y Free Cash Flow explained simply and with examples https://www.youtube.com/watch?v=gl3OLtEX2PM Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 81861 The Finance Storyteller
Explanation of the cash flow statement - its components, what they represent, and basic ways to analyze the information. This series was initially developed to train credit and collection professionals. Free eBook available on our web site of the 5 part series Introduction to Financial Statement Analysis from commercial collection agency The Kaplan Group www.kaplancollectionagency.com.
Views: 253234 The Kaplan Group
Described concept and procedure to prepare a Cash Flow Statement as per Accounting Standard-3 Students may also watch following lectures : 1. Cash Flow Statement (Treatment of Tax & Dividend) : https://www.youtube.com/watch?v=q-KZ-INDHNs 2. Concept behind formation of a Formula (Ratio Analysis) : https://www.youtube.com/watch?v=76gMXQBnbps 3. Balance Sheet of a Company : https://www.youtube.com/watch?v=IuExxeB4XNk Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing #CashFlowStatement #Accounting
Views: 445815 CA. Naresh Aggarwal
Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we evaluated the cash flow statement of Walmart, Sears, Intel, and Kodak. The lesson provides good and bad cash flow statements so students could see the difference between risky and healthy companies. One of the key factors learned in this lesson was the importance of the operating activity and the operating activities section of the statement. Since the investing and financing activity are dependent upon the operating activity, it became obvious this section is the lifeblood of any business.
Views: 232762 Preston Pysh
This video tell us about two things 1) What is Cash Flow Statement? 2) How to prepare it? This video on Cash Flow Statement is useful for Class 11th, class 12th, B.Com, BBA, CA, CS, Accountancy Students, Financial Management students etc. And just because this is an important topic, you should understand it properly. In this Cash Flow Statement, i have discussed Indirect Method. It is based on AS 3.
Views: 151166 Lavish Gupta
Watch the latest from New Venture Mentor: "How to Beat Your Bigger Competitors in Attracting and Retaining Top Talent" https://www.youtube.com/watch?v=b4OD44N7a6k --~-- Learn the basics of cash flow analysis to maintain healthy finances at your small business or startup. See the full post here: http://www.catecosta.com/basics-cash-flow-analysis-startups-small-businesses/ If you'd like to purchase the ebook I mentioned, you can do so here: http://www.amazon.com/dp/B00HMMO7M6 If you'd like to check out the other cash flow video I mentioned you can find it here: http://youtu.be/aoyLRd2QyXs Are you an entrepreneur or aspiring entrepreneur who needs help turning your fabulous idea into a profit-generating startup or small business? Visit www.CateCosta.com to learn how to build your business so you can live your dream. You can also find me on Twitter: https://twitter.com/cate_costa, Facebook: https://www.facebook.com/cate.l.costa, and Google+: https://plus.google.com/u/0/+CateCosta/posts. Need personalized help? Make an appointment [https://www.popexpert.com/experts/da2ac5ed-bca2-4961-b2e7-16591a39d9f4?utm_campaign=meet_me_button&utm_medium=widget&utm_source=expert]. New clients get 50% off the first session.
Views: 53745 Cate Costa
▓▓▓▓░░░░───CONTRIBUTION ───░░░▓▓▓▓ If you like this video and wish to support this kauserwise channel, please contribute via, * Paytm a/c : 7401428918 * Paypal a/c : www.paypal.me/kauserwisetutorial [Every contribution is helpful] Thanks & All the Best!!! ─────────────────────────── Here is the video about Cash Flow statement in Cost and Management accounting , and in this video we discussed Funds from operation,cash from operation, Funds flow statement with sample problem in simple manner. Hope this will help you to get the subject knowledge at the end. Thanks and All the best. To watch more tutorials pls visit: www.youtube.com/c/kauserwise * Financial Accounts * Corporate accounts * Cost and Management accounts * Operations Research Playlists: For Financial accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnojfVAucCUHGmcAay_1ov46 For Cost and Management accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnpgUjlVR-znIRMFVF0A_aaA For Corporate accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnorJc6lonRWP4b39sZgUEhx For Operations Research - https://www.youtube.com/playlist?list=PLabr9RWfBcnoLyXr4Y7MzmHSu3bDjLvhu
Views: 631001 Kauser Wise
Often hidden in a company’s accounts, a cash flow statement is a vital document if you're looking to invest in a company. Tim Bennett explains what it is, and what it can reveal to investors. Visit http://moneyweek.com/youtube for extra videos not found on YouTube. MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors. In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter. Related links: - The six numbers every investor should know... http://moneyweek.com/videos/video-tutorial-six-numbers-every-investor-should-know-13201/ - What is profit? http://moneyweek.com/videos/beginners-guide-to-investing-what-is-profit-04914/ - MoneyWeek's favourite valuation ratio: https://www.youtube.com/watch?v=FwxJYH5DcAI - What is a balance sheet? http://moneyweek.com/videos/beginners-guide-to-investing-what-is-a-balance-sheet-11514/ - What is enterprise value? https://www.youtube.com/watch?v=Au15IrXW4iU - How to value a company using net assets https://www.youtube.com/watch?v=rV68zoBKTJE - How to value a company using multiples https://www.youtube.com/watch?v=g4_eKPJmy1E
Views: 433769 MoneyWeek
Free cash flow is possibly the most critical number you can look at as a Rule #1 investor, yet it's not a number that's found very easily. In this video, I discuss how you can calculate free cash flow using the company's cash flow statement. http://bit.ly/1Zh9T8h To sign-up for my Transformational Investing Webinar, click the link above. Think you have enough money saved for retirement? Learn more: http://bit.ly/1PTafj1 Don't forget to subscribe to my channel here: http://ow.ly/RNAnK _____________ For more great Rule #1 content and training: Podcast: http://bit.ly/1N3FZ07 Blog: http://bit.ly/1OXZcIn Facebook: https://www.facebook.com/rule1investing Twitter: https://twitter.com/Rule1_Investing Google+: +PhilTownRule1Investing Pinterest: https://www.pinterest.com/rule1investing/
Views: 89851 Phil Town's Rule #1 Investing
Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, students learned the importance of the Cash Flow Statement. This important document is used to help determine how money flows through a business. Prior to 1987, investors could only examine the health of a company from the income statement and balance sheet. Due to stricter regulations, publically traded companies are now required to also disclose the cash flow statement. The cash flow statement is broken down into three categories. 1. Operating Activities: This is probably the most important section of the statement because it shows the money that's flowing into the business from the product or service that the company produces. Positive revenues listed on the cash flow statement from other activities are not sustainable in the long term, so that's why this section is so important. 2. Investing Activities: A negative number listed in this section would mean that the company is investing money. A positive number in this section would mean that the company sold an asset in order to generate money. Obviously its better to see a negative number show-up under this section because it implies that the company is continuing to invest the revernues that it produces. 3. Financing Activities: In this section, an investor can identify whether the business is try to raise money or pay off debts. A positive number in this section means the company is incuring debt or dilute the value of their shares. A negative number means the company is paying off debt or increasing the value of their shares (through a share buy back). Generally speaking its good to see a negative number under this section because it means the company is removing their leverage and creating a stronger position for their shareholders. The Cash flow is a great document to help look at trends and how money flows through a business. Although the balance sheet and income statement are very useful documents for determining the intrinsic value of a stable company, the cash flow statement gives potential investors a glimps into the current conditions of the company and how they manage their resources.
Views: 158866 Preston Pysh
Learn how to produce a Cash Flow Statement using the Indirect Method. This episode of Accounting Basics for Beginners is Part 3 covering Indirect Method Cash Flow Accounting. The rest of the series can be found here: Cash Flow Statement Direct Method (Part 1) → https://youtu.be/Xy-yDw0gsgc Cash Flow Statement Direct Method (Part 2) → https://youtu.be/KOR10VPsyO8 Preparing a Cash Flow Statement using the Direct Method can be time consuming. In this episode of Accounting Stuff, I'll show you the faster way.... using the Indirect Method. — STUFF I USED IN THIS VIDEO ▪ The pens → https://geni.us/sTPHTV ▪ The bullet journal → https://geni.us/yToB — FAVOURITE ACCOUNTING BOOK FOR BEGINNERS ▪ The Accounting Game → http://geni.us/5mKR7m — #1 CLOUD ACCOUNTING SOFTWARE ▪ QuickBooks Online USA (FREE TRIAL) → http://geni.us/jA9N ▪ QuickBooks Online Canada (60% OFF for 6 MONTHS) → https://geni.us/bNN7 — THE GEAR I SHOOT WITH ▪ Camera Body → https://geni.us/tsBf ▪ Wide Lens → https://geni.us/muJK1 ▪ Normal Lens → https://geni.us/jAV0TB ▪ Tight Lens (My Favourite) → https://geni.us/n2qwY ▪ Shotgun Mic → https://geni.us/vE2Bz ▪ Lighting → https://geni.us/ZbtctiF — FOLLOW ME ON ▪ Insta → https://www.instagram.com/accountingstuff ▪ Kit → https://kit.com/AccountingStuff ▪ Twitter → https://twitter.com/AccountantStuff — LEARN ACCOUNTING BASICS FOR FREE ▪ The Full Playlist → https://www.youtube.com/playlist?list=PL5zKSeS09l339nB6ujJPQ9Rsv99_b-aTb ________________________ DISCLAIMER Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you! For sponsorship, product reviews, and collaboration, you can email me here: [email protected] ________________________ #accounting #accountingbasics #accountingstuff
Views: 13839 Accounting Stuff
Create a basic cash flow forecast using excel. If you need help get in contact. www.bpfs-online.com Support this channel https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=FHGCUQ8GU9VB6 Take our Online Sage training course http://www.bpfs-online.com/p/online-sage-training-course.html Create a bookkeeping spreadsheet using Microsoft Excel http://youtu.be/LlWADbkGdac Sage Accounts Bookkeeping Tutorial/Training Learn more at www.bpfs-online.com
Views: 630340 BookkeepingMaster
Learn all about the Cash Flow Statement and how to prepare it using the Direct Method. Cash Flow Accounting with the Direct Method (Part 2) → https://youtu.be/KOR10VPsyO8 Cash Flow Accounting with the Indirect Method (Part 3) → https://youtu.be/8CH-6wdfz0Y Many people have a hard time getting to grips with the Statement of Cash Flows, but in this episode of Accounting Basics for Beginners we break it down into nice and tasty, brain digestible chunks. You'll learn why CASH IS KING, and why the Direct Method is preferred by Investors. We break down the Cash Flow Statement into it's three sections: → Cash Flows from Operating Activities → Cash Flows from Investing Activities → Cash Flows from Financing Activities Last but not least... I'll explain why despite all the advantages of the Direct Method. Most corporations opt for the Indirect Method instead. — LISTEN TO HARRY POTTER ▪ Audible → http://geni.us/8KaGkp — STUFF I USED IN THIS VIDEO ▪ The pens → https://geni.us/sTPHTV ▪ The bullet journal → https://geni.us/yToB — FAVOURITE ACCOUNTING BOOK FOR BEGINNERS ▪ The Accounting Game → http://geni.us/5mKR7m — #1 CLOUD ACCOUNTING SOFTWARE ▪ QuickBooks Online USA (FREE TRIAL) → http://geni.us/jA9N ▪ QuickBooks Online Canada (60% OFF for 6 MONTHS) → https://geni.us/bNN7 — THE GEAR I SHOOT WITH ▪ Camera Body → https://geni.us/tsBf ▪ Wide Lens → https://geni.us/muJK1 ▪ Normal Lens → https://geni.us/jAV0TB ▪ Tight Lens (My Favourite) → https://geni.us/n2qwY ▪ Shotgun Mic → https://geni.us/vE2Bz ▪ Lighting → https://geni.us/ZbtctiF — FOLLOW ME ON ▪ Insta → https://www.instagram.com/accountingstuff ▪ Kit → https://kit.com/AccountingStuff ▪ Twitter → https://twitter.com/AccountantStuff — LEARN ACCOUNTING BASICS FOR FREE ▪ The Full Playlist → https://www.youtube.com/playlist?list=PL5zKSeS09l339nB6ujJPQ9Rsv99_b-aTb ________________________ DISCLAIMER Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you! For sponsorship, product reviews, and collaboration, you can email me here: [email protected] ________________________ #accounting #accountingbasics #accountingstuff
Views: 8350 Accounting Stuff
This video demonstrates how to prepare a Statement of Cash Flows using the Indirect Method. A comprehensive example is provided to illustrate how an income statement, comparative balance sheet, and additional information are used to create a Statement of Cash Flows from scratch. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 185741 Edspira
Here is a pdf version of the NKE Statements I Used https://goo.gl/2h6rQG How to read cash flow statement? The Cash Flow Statement is a crucial financial statement to understand. We walk through the cash flow statement in this video. ★☆★ Subscribe: ★☆★ https://goo.gl/qkRHDf Investing Basics Playlist https://goo.gl/ky7CJq Investing Books I like: The Intelligent Investor - https://amzn.to/2PVhfEL Common Stocks & Uncommon Profits - https://amzn.to/2DAV8h9 Understanding Options - https://amzn.to/2T9gFSp Little Book of Common Sense Investing - https://amzn.to/2DfFGG2 How to Value Exchange-Traded Funds - https://amzn.to/2PWSkRg A Great Book on Building Wealth - https://amzn.to/2T8AKZ1 Dale Carnegie - https://amzn.to/2DDAk8w Effective Speaking - https://amzn.to/2DBncAT Equipment I Use: Microphone - https://amzn.to/2T7JxL6 Video Editing Software - https://amzn.to/2RQM1vE Thumbnail Editing Software - https://amzn.to/2qIUAgP Laptop - https://amzn.to/2T4xA8Z DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment. #LearnToInvest #StocksToWatch #StockMarket
Views: 26055 Learn to Invest
Visit the new NerdEnterprises.com Subscription Options: https://nerdenterprises.com/services/subscription-based-training/ One to One Training: https://nerdenterprises.com/services/one-to-one-training/ Get templates: https://nerdenterprises.com/resources-page/templates/
Views: 46408 Nerd Enterprises, Inc.
Before investing in the share market, its important to know the financials of the company and equally important is its balance sheet analysis. Today, we find out what is cash flow statement and how does it determine the health of the company? CNBC Awaaz is India’s number one business channel and an undisputed leader in business news and information for the last ten years. Our channel aims to educate, inform and inspire consumers to go beyond limitations, with practical tips on personal finance, investing, technology, consumer goods and capital markets. Policymakers and business owners alike have grown to trust CNBC Awaaz as the most reliable source with its eye on India’s business climate. Our programming gives consumers a platform to make decisions with confidence. Subscribe to the CNBC Awaaz YouTube channel here: https://goo.gl/g3rzrW Follow CNBC Awaaz on Twitter: https://twitter.com/CNBC_Awaaz Like us on our CNBC Awaaz Facebook page: https://hi-in.facebook.com/CNBCAwaazIndia
Views: 18441 CNBC Awaaz
What is Free Cash Flow (FCF) and how do I calculate it? What is Free Cash Flow used for? What is the Free Cash Flow performance of Exxon Mobil (NYSE: XOM), Facebook (NASDAQ: FB), General Electric (NYSE: GE) and General Motors (NYSE: GM)? This Finance Storyteller video provides an in depth look at common and alternative definitions of Free Cash Flow (FCF), compares the profit view and the cash flow view of looking at a company’s performance, and analyzes the Free Cash Flow numbers published by Exxon Mobil, Facebook, General Electric and General Motors. Free Cash Flow is usually defined as: Cash flow not required for operations or reinvestment Cash flow available for distribution among all the securities holders (debt or equity) of an organization Calculation: Cash From Operating Activities (CFOA) minus Capital Expenditures Unfortunately, the Free Cash Flow definitions that companies use are not always the same. Some stay very close to what you see here, but we will also see some alternative definitions along the way in this video. Related videos: Cash Flow Statement explained https://www.youtube.com/watch?v=mZBjsIYrLvM GAAP versus non-GAAP https://www.youtube.com/watch?v=ewzlgnGtfmg&t=74s T-accounting https://www.youtube.com/watch?v=-DjEE6jLe4Y Depreciation https://www.youtube.com/watch?v=6SY8s1_OEro&t=24s Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 9437 The Finance Storyteller
Brought to you by StratPad: Simple Business Plan App. Try it free at http://www.stratpad.com In this video, we dig into the statement of cash flows and how it measures the ebbs and flows of cash in your company. We'll use an example to help you understand how to arrive at net cash by calculating three components on the statement of cash flows: cash from operations, cash from investing and cash from financing. http://www.stratpad.com/financial-statements-made-easy-video-course/statement-of-cash-flows-net-cash-from-operations-investments-and-financing/ Video Transcript Let's take a couple of minutes to look at the statement of cash flows in greater detail. Then I'll get into an example that brings all this together. The statement of cash flows is broken into three sections: 1. Cash from operations, which you already have seen — it starts off with the cash from net income and then makes adjustments, up or down, related to whether or not customers are paying us this month or they're paying us later. And then adjustments up or down depending on accounts payable, whether we are paying our suppliers this month or whether we are delaying payments to suppliers. 2. Cash from investing. This is investments that the company makes. This is not investments that others make in the company. The company can make investments by buying a building or by buying equipment and those things are then used for the company to generate additional cash. 3. Cash from financing is where we get bank loans and also where outside investors will purchase stock in the company. Here's a quick example with numbers so you can see how this adds and flows. Net income is $5,000 of profit this month; Accounts receivable went up ($4,000), which adversely affects our cash; and Accounts payable also went up ($2,000) and when accounts payable goes up, that improves our cash position. We subtotal this ($5,000 minus $4,000 plus $2,000) is $3,000. We spent $15,000 on a piece of equipment, so that's cash going out. Total cash from investing is minus $15,000. We took a bank loan of $10,000, so that's cash in. We also had a founder put in an additional $25,000 worth of cash. Therefore, cash from financing is $35,000. Then we total each of these three sections ($3,000 minus $15,000 plus $35,000) is $23,000. Cash at the beginning of the period was zero. Therefore, cash at the end is $23,000, with a double-underline to show that we're at the end. I hope you can see that the statement of cash flows tells a pretty clear story of the comings and goings of the cash in the period. It does take a bit of practice though, particularly things like accounts receivable, which seem to be a little counter-intuitive. As you're going through it, just make sure that you're asking yourself the question: is more cash coming in or is more cash coming out? If cash is coming in, then it's a positive value like here ($5,000). If cash is coming out, like when we spend money on equipment, then it's a negative value (minus $15,000). If you stick by that rule of thumb, that will help you get through this. Then, of course, you should just be practicing looking at your statement of cash flows every single month. You're just about to graduate! Just one more video where we bring this all together and then you're done. Way to go.
Views: 75937 Alex Glassey
What is a Cash Flow Statement? Learn more at: https://www.wallstreetsurvivor.com/register A company can be in great shape on its balance sheet and doing fine on its revenues. But if its cash flow is hurting, it will have to do a lot of healing in order to pull on through. Cash can really make or break a company. The flow statement tells it as it is: cash in - cash out = net cash. A cash flow statement records how much money flowed into the company over a given period and how much money flowed out. Inflows can be from anything—usually a company’s regular sales provide the biggest source, but it can also bring money in from things like selling assets it owns. Cash flow for a company is like oxygen for a person. The body may be in great shape, but if for some reason a person is having trouble breathing, organs can get damaged and the whole body can die. Similarly in a company, if cash isn’t circulating around a company the way it is supposed to—with money coming in from customers and money going out to payroll, suppliers and lenders—the company can experience serious damage and even fold. Learn more about Cash Flow Statement with Wall Street Survivor's Evaluating a Business course: http://courses.wallstreetsurvivor.com/is/13-evaluating-a-business/
Views: 44486 Wall Street Survivor
Every investor should have a basic grasp of the discounted cash flow (DCF) technique. Here, Tim Bennett introduces the concept, and explains how it can be applied to valuing a company.
Views: 509622 MoneyWeek
This video demonstrates how to calculate Cash Flow from Operations (aka Operating Cash Flow) using the Indirect Method on the Statement of Cash Flows. The video uses a comprehensive example to show how Cash Flow from Operations is computed and explains how Cash Flow from Operations is different from Cash Flow from Investing and Cash Flow from Financing. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 111478 Edspira
Learn the building blocks of a financial model. In this video, we'll build a cash flow statement given an income statement and balance sheet in Excel. To download the Excel template that goes with this video, go to http://www.wallstreetprep.com/blog/financial-modeling-quick-lesson-cash-flow-statement-part-1/ The accounting here is a simplified presentation of how the three major financial statements are inter-related and lays the foundation of financial statement models in investment banking. Many accounting questions that we see time and again in finance interviews are designed to test the understanding explained in this exercise.
Views: 390092 Wall Street Prep
How to read and analyze a cash flow statement of a company? This cash flow statement tutorial is a companion video to “How to read an annual report” and “How to read an income statement”, and covers the 2017 cash flow statement of Alphabet Inc. It is advisable to watch the income statement analysis video first, as we will build on this income statement analysis when reviewing the cash flow statement. Related videos on Alphabet Inc financial statements How to read an income statement: Alphabet Inc case study https://www.youtube.com/watch?v=ToE-oggQiqQ&list=PLKbmcnUUQMln5eTjJstYPUNrfPH8b7l60&index=1 How to read a balance sheet: Alphabet Inc case study https://www.youtube.com/watch?v=XKSOswE-_6c&list=PLKbmcnUUQMln5eTjJstYPUNrfPH8b7l60&index=3 Balance sheet comparison Alphabet Inc (Google) vs Facebook https://www.youtube.com/watch?v=ya7rRZJCLEc&index=4&list=PLKbmcnUUQMln5eTjJstYPUNrfPH8b7l60 We perform a high-level cash flow statement analysis of Alphabet Inc, by focusing on five areas: cash balance change over three years, cash balance walk for 2017, and a review of CFOA, CFIA and CFFA. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 2956 The Finance Storyteller
In this video, 25.01 – Statement of Cash Flows – Lesson 1, Roger Philipp, CPA, CGMA, is excited to present a brief conceptual overview of the statement of cash flows - an important topic that is heavily tested on the CPA Exam. Under U.S. GAAP, any company presenting results of operations in its financial statements must include a statement of cash flows. The statement of cash flows shows cash balance at the beginning of the year and cash balance at the end of the year, while also accounting for the changes between the beginning and ending balances. Cash flows derive from operating activities, investing activities, or financing activities, and the net amount from all these activities will equal the overall increase or decrease in cash balance from the beginning of the year to the end. Investing and financing activities are clearly defined by the FASB while operating activities is more of a catch-all category. Roger defines cash and cash equivalents while providing illustrative examples for the original maturity date to the purchaser rule for deciding whether an asset is a cash equivalent or an investment. Also, be forewarned – there are lots of journal entries that lie ahead! Website: https://www.rogercpareview.com Blog: https://www.rogercpareview.com/blog Facebook: https://www.facebook.com/RogerCPAReview Twitter: https://twitter.com/rogercpareview LinkedIn: https://www.linkedin.com/company/roger-cpa-review Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: https://www.rogercpareview.com/professor-resource-center/ Video Transcript Sneak Peek: Welcome, welcome to a fun and exciting area called statement of cash flows. Cash flows, very heavily tested. Very important area, we are going to probably spend an hour, hour and a half on this right now. In different sections or different little video clips, but it's going to be a really important area. You need to understand this, heavily tested on the exam. Very important for real world, right? You are out there doing a job. This is stuff we're going to cover both for GAAP and then at the very end of the section under IFRS and the comparisons and differences. Alright, statement of cash flows. So we've got our statements. Whose statements are these? Management's, right? Management is responsible for the preparation for the content, and so on. A complete set of financial statements is a balance sheet, income statements, and statement of changes in stock holder's equity, statement of cash flows, other comprehensive income, and things like that. So a statement of cash flows is just this. It talks about how much cash did I have at the beginning of the year burning a hole in my pocket, how much cash do I have at the end of the year? We are looking at the difference between the beginning and the end and we are trying to see, what are the ch-ch-ch-changes in cash? So what it tells me is, how much cash do I have at the beginning, how much cash do I have at the end? The difference is the increase or decrease in cash. So let's say for example at the beginning of the year I had $100, at the end of the year I have $250. That means I've got $150 more cash burning a hole in my pocket. My job is to figure out, where did this cash come from? As we look at this we are going to see the cash could come from either operating activities or investing activities or financing activities. You are going to see this plus or minus this plus or minus this equals the net change. So what we are trying to do is say, “Hey, I've got $150 more money in my pocket, where did it come from?" Where did that money come from? That's the purpose of the statement of cash flows. So what we're going to have to do is understand, first of all, what is the definition of cash, because we are talking about the change of cash. The other thing is, we need to define what these activities are. The FASB very carefully defined investing and financing. If it's not investing or financing, what is? Boom, operating. Operating is like the catch-all. If you don't know where to put it, put it in operating. So that's what we're looking at as far as where the amounts are coming from. We've got operating, investing and financing. FASB carefully defines investing and financing. Everything else is what? Operating. So again, the key is the change. ♫Ch-ch-ch-changes, and face the strain ♫ who sang that song, many years ago? D-d-d-d-David Bowie. Ch-changes, there you go! Alright, looking at notes it says, "Statement of cash flows is required whenever a company presents their results of operations". So you provide an income statement you've got to have a statement of cash flows. The purpose is to provide in-flows and out-flows, sources and uses. What is the source of money coming in, what is the use of money going out? Where did the money come from, where is the money going to? That's our sources and uses.
Views: 35224 Roger CPA Review
How to find Cash Flow Operating Activities using indirect method Hi Guys, This video will show you a simple example how to find the cash flow provided/(used) for operating expenses in a Lemon Stand. Please enjoy it and visit our website at www.i-hate-math.com Thanks for learning ! 00:00 - Cash Flow Operating Activities: INDIRECT METHOD 00:15 - 00:26 - 01:01 - 01:49 - 04:47 - 05:50 - Don't forget to watch our other videos at www.i-hate-math.com 05:59 -
Views: 129755 I Hate Math Group, Inc
Clicked here http://www.youtube.com/watch?v=SzMbBOtOuJ4 and OMG wow! I'm SHOCKED how easy.. Whether or not you have taken accounting, in all likelihood you know about the ideas of income and profit. Income is just what amount you secure that goes precisely to your bank balance, whether from a payment or organization or both. http://www.youtube.com/watch?v=SzMbBOtOuJ4 Then again, offhandedly put, profit is more exact in that it is just how much you generate from an enterprise... it is your revenue less your costs and expenses. For this reason profit is now and again termed as net income. http://mbabullshit.com/blog/2011/08/06/cash-flow-understanding-cash-flow-statement-tutorial/ Notwithstanding, you ought to be attentive when applying the concept of profit or net income. It signifies you earn, however it will not essentially represent that you receive any real cash. What are the reasons? Just for instance you offer a watch to an important person. He gets the watch from your shop and he boasts to pay you $100 cash after 1 month. Do you record on your books that the sale materialized at present or one month subsequently? Based on generally accepted accounting principles (GAAP), you would need to record that the sale was made at present. Definitely not next month. As a result, you likewise can already write down your profit presently... whether or not you could not receive any actual cash as of yet. This kind of profit is labelled as "accrued" income. You gain income even without the need for recovering any cash to date. This is where the distinction concerning a Net Income Statement and a Free Cash Flow Statement comes in. A Net Income Statement indicates net income, subject to cash income and accrued income along with both cash expenses together with accrued expenses. A Free Cash Flow Statement reveals free cash flow based on all the actual cash which the company earns, less all the cash payments the business enterprise in truth makes. A Free Cash Flow Statement doesn't give thought to accrued income, and it will not think of accrued expenses which have certainly not been paid for in cash. Also, a Net Income Statement will not consider cash payments for capital for the company's building, property and equipment, but the Free Cash Flow Statement displays these transactions provided these payments were already done in the form of cash. It can be told that the Net Income Statement and the Cash Flow Statement symbolize 2 diverse philosophies. Thus who utilizes which ideology? Essentially, accountants prefer to utilize the income statement in reporting business enterprise proceeds. The government typically looks at your income statement as well when it wants to determine the amount of taxes you would need to pay. On the other hand, modern financial managers regularly desire to look at the Free Cash Flow Statement as a factual measure as to "how efficiently the firm is doing", believing that income isn't really income until you actually generate cash.
Views: 352414 MBAbullshitDotCom
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Welcome to this cash flow statement tutorial showing how to read a cash flow statement using the 2016 through 2018 actual numbers from Tesla. A disclaimer before we begin: I don’t hold any position in shares in Tesla, nor do I own a Tesla car. Let’s start with the purpose of the cash flow statement. What a company shows by publishing a cash flow statement in an annual report, is how they got from the cash balance on January 1st (on the previous balance sheet), to the cash balance on December 31st (the latest balance sheet). The increase or decrease between the January 1st and December 31st cash balance is called cash flow. It consists of three categories: Cash From Operating Activities (basically the incoming cash from customers minus outgoing payments to employees, suppliers and governments), Cash From Investing Activities (mostly outflows due to capital expenditures and acquisitions), Cash From Financing Activities (cash inflows or cash outflows due to changes in borrowings and issuing equity), or terms with slight variations on that wording. Time to look at the relationship between cash balance and cash flow from the start of 2016 to the end of 2018. We will put 2016 on the right, and 2018 on the left. Tesla started 2016 with $1.2 billion in cash, and ended the year with $3.8 billion. That cash balance further increased to $4 billion by the end of 2017, and $4.3 billion by the end of 2018. What were the characteristics of the cash flow in each of the years, and the “themes” we can identify from these numbers. For each of the three years, the ending cash balance is higher than the opening cash balance, but the extent and driver for the increase varies. 2016 had a slight cash outflow from operating activities, $1.1 billion outflow from investing activities, and a significant cash raising of $3.8 billion in financing activities. 2017 had another slight outflow from operating activities, record $4.2 billion of cash outflow from investing activities, and record $4.4 billion in cash raising in financing activities. 2018 was the first year with significant cash inflow from operating activities of $2.1 billion, a further $2.3 billion of cash outflow from investing activities, and a shrinking of the cash inflow from financing activities to $500 million. We could call 2016 the year of “pre-funding for current and future investments”, 2017 the balancing year of investing outflows equaling cash raising inflows, and 2018 the year where Tesla became nearly self-funding (cash inflow from operations almost equal to the cash outflow from investing). Philip de Vroe (The Finance Storyteller) aims to make strategy, #finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better #investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 1402 The Finance Storyteller
You'll learn what "Free Cash Flow" (FCF) means, why it's such an important metric when analyzing and valuing companies. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also learn how to interpret positive vs. negative FCF, and what different numbers over time mean -- using a comparison between Wal-Mart, Amazon, and Salesforce as our example. Table of Contents: 0:54 What Free Cash Flow (FCF) is and Why It's Important 2:26 What Positive FCF Tells You, and What to Do With It 3:56 What Negative FCF Tells You, and What to Do With It 4:38 Why You Exclude Most Investing and Financing Activities in the FCF Calculation 7:55 How to Use and Interpret FCF When Analyzing Companies 11:58 Wal-Mart vs. Amazon vs. Salesforce: Free Cash Flow Across Sectors 19:33 Recap and Summary What is Free Cash Flow? Normally it's defined as Cash Flow from Operations minus Capital Expenditures. Tells you the company's DISCRETIONARY cash flow - after paying for expenses and working capital requirements like inventory and capital expenditures, how much cash flow can it put to use for other purposes? If the company generates a lot of Free Cash Flow, it has many options: hire more employees, spend more on working capital, invest in CapEx, invest in other securities, repay debt, issue dividends or repurchase shares, or even acquire other companies. If FCF is negative, you need to dig in and see if it's a one-time issue or recurring problem, and then figure out why: Are sales declining? Are expenses too high? Is the company spending too much on CapEx? If FCF is consistently negative, the company might have to raise debt or equity eventually, or it might have to restructure itself or cut costs in some other way. Why Do You Exclude Most Investing and Financing Activities Other Than CapEx? Because all other activities are, for the most part, "optional" and non-recurring. A normal company does not NEED to buy stocks or issue dividends or repurchase shares... those are all optional uses of cash. All it NEEDS to do to keep its business running is sell products to customers, pay for expenses, and keep investing in longer-term assets such as buildings and equipment (PP&E). Debt repayment and interest expense are "borderline" because some variations of Free Cash Flow will include them, others will exclude them, and some will include interest expense but not debt principal repayment. How Do You Use Free Cash Flow? It's used in a DCF (or at least, a variation of it) to value a company; it's also used in a leveraged buyout (LBO) model to determine how much debt a company can repay. And you can calculate it on a standalone basis for use when comparing different companies. The key is to DIG IN and see why Free Cash Flow is changing the way it is - Organic sales growth? Artificial cost-cutting? Accounting gimmicks? Different working capital policies? IDEALLY, FCF will be increasing because of higher units sales and/or higher market share, and/or higher margins due to economies of scale. Less Good: FCF is growing due to cost-cutting, CapEx slashing, or FCF is growing in spite of falling sales and profits... because of a company playing games with Working Capital, non-core activities, or CapEx spending. Wal-Mart vs. Amazon vs. Salesforce Comparison Main takeaway here is that Wal-Mart's FCF is all over the place, but Cash Flow from Operations is MOSTLY growing, so that appears to be driven by the also growing organic sales. The company is doing some odd things with CapEx and Working Capital, which led to fluctuations in FCF - not exactly "bad" or "good," just neutral and requires more research. With Amazon, they've increased CapEx spending massively in the past 2 years so that has pushed down CapEx. CFO is growing, driven by organic revenue growth (no "games" with Working Capital), but it's very difficult to assess whether all that CapEx spending will pay off in the long-term. With Salesforce, FCF is definitely growing organically (Revenue growth leads directly to CFO growth, and CapEx varies a bit but not as much as with Amazon), but the company is also spending a ton on acquisitions... will it continue? If CapEx as a % of revenue stays low, it will most likely continue to spend on acquisitions - unlikely to issue dividends, repurchase shares, etc. since it's a growth company. Further Resources http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Free-Cash-Flow.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Walmart-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Amazon-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-10-Salesforce-Financial-Statements.pdf
Views: 145357 Mergers & Inquisitions / Breaking Into Wall Street
The best way to learn how to read a cash flow statement is to go through real-life examples of companies you have heard of! Let me show you in this video what a cash flow statement is, and how the cash flow numbers look for Tesla (NASDAQ: TSLA) for 2016. Let’s start with the purpose of the cash flow statement. What a company shows by publishing a cash flow statement in an annual report, is how they got from the cash balance on January 1st (on the previous balance sheet), to the cash balance on December 31st (the latest balance sheet). The increase or decrease between the January 1st and December 31st cash balance is called cash flow. It consists of three categories: Cash From Operating Activities, Cash From Investing Activities, Cash From Financing Activities, or terms with slight variations on that wording. We will review Tesla’s cash flow statement for 2016. Tesla started the year with $1.2B in cash and cash equivalents, and ended the year with $3.4B. The total cash flow was therefore a net cash inflow of $2.2B. Now where did that $2.2B in cash flow come from? Cash From Operating Activities was an outflow of $100MM, or $0.1B. In finance, we put negative numbers between brackets. Cash From Investing Activities was an outflow of $1.4B. Cash From Financing Activities was an inflow of $3.7B. So that’s the top level cash flow picture: Tesla attracted financing in the form of debt or equity which allowed them to invest. Tesla ended the year with more cash than they started with, to continue investing and running everyday operations. In the video, we go one level deeper, discussing each of the cash flow categories. Cash From Operating Activities will take the vast majority of the attention, Cash From Investing Activities and Cash From Financing Activities are fairly straightforward for Tesla in 2016. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 5863 The Finance Storyteller
It's important to know how to calculate the cash on cash return and a cash flow analysis for real estate. You want to know if your deal is performing well? Steven and Kris demonstrate how to do a cash flow analysis through an equation we call the cash on cash return. The math determines whether or not you're putting your money into a good deal. If you want to rock real estate, you got to learn how to crunch the numbers. Watch and Enjoy! Kris Krohn & Nate Woodbury WORK WITH KRIS: ======================== Becoming a successful real estate investor is easier than most people know… as long as you have the right Mentor and the right system. Click here to learn your best options: http://LimitlessMentor.com/TV/ BOOKS By Kris Krohn ======================== The Straight Path To Real Estate Wealth: http://limitlessmentor.com/TV The Conscious Creator: http://amzn.to/2gFEkblLimitless: http://amzn.to/2gLQXoV Be On Limitless TV ======================== Record your questions on video, and join me in a future episode: http://bit.ly/2yO78c7 MUSIC ======================== Tobu - Infectious https://www.youtube.com/watch?v=ux8-EbW6DUI Artist: https://www.youtube.com/tobuofficial Licensed under Creative Commons — Attribution 3.0 Unported— CC BY 3.0 ======================== Video by Nate Woodbury (The Hero Maker) BeTheHeroStudios.com http://YouTube.com/NateWoodburyHero
Views: 11181 Kris Krohn
We offer the most comprehensive and easy to understand video lectures for CFA and FRM Programs. To know more about our video lecture series, visit us at www.fintreeindia.com This Video lecture was recorded by Mr. Utkarsh Jain, during his live CFA Level I Classes in Pune (India). This video lecture covers following key area's: 1. cash flows from operating, investing, and financing activities and classify cash flow items as relating to one of those three categories given a description of the items. 2. How non-cash investing and financing activities are reported. 3. cash flow statements prepared under International Financial Reporting Standards (IFRS) and U.S. generally accepted accounting principles (U.S. GAAP). 4. between the direct and indirect methods of presenting cash from operating activities and describe arguments in favor of each method. 5. how the cash flow statement is linked to the income statement and the balance sheet. 6.The steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data. 7.cash flows from the indirect to the direct method. 8. Analyze and interpret both reported and common-size cash flow statements. 9. Interpret free cash flow to the firm, free cash flow to equity, and performance and coverage cash flow ratios. #CFA #FinTree
Views: 59168 FinTree
This video shows how to calculate Cash Flows from Financing Activities when preparing a Statement of Cash Flows. A comprehensive example is provided to illustrate how cash provided by or to debtholders and equityholders is tallied to compute the net cash provided by financing activities. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 49350 Edspira
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Views: 25599 Nerd Enterprises, Inc.
HERE IS THE LECTURE BY SIR ASHISH ON Cash flow statement - Accountancy and Finance Class 11th | Class 12th | Mba | Bba | M.com | B.com watch video how to solve cash flow: https://www.youtube.com/watch?v=rNdHEX5W8fs watch video for objectives of cash flow: https://www.youtube.com/watch?v=Hlx33jT-bXM&t=55s Watch Video for What is depreciation : https://www.youtube.com/watch?v=1vkARhA4Oe4 FOR NOTES AN PREVIOUS YEARS EXAM PAPERS DOWNLOAD : http://www.examhelplogger.com/difference-between-micro-macro-economics-notes-mba-bba-b-com-cbse-class-12th/ JOIN US ON: FACEBOOK: https://www.facebook.com/examhelplogr/ TWITTER: https://twitter.com/examhelplogger GOOGLE PLUS: https://plus.google.com/u/0/b/111629836618296120046/111629836618296120046 music credit: http://www.bensound.com/
Views: 153593 examhelplogger.com
Jump start your consulting with accreditation at www.aasbc.com The Statement of Cash Flows is extremely important for small businesses to understand how they obtained cash and where it went. Sometimes called the "Where Got - Where Gone" statement. Learn its importance and purpose. Learn more in-depth concepts at www.aasbc.com
Get Your Xero 30 Day Free Trial: http://fitsmallbusiness.com/goto/xero-course-youtube/ In this lesson, we’re going to cover how to create a cash flow statement in Xero. Access this Lesson here: http://fitsmallbusiness.com/create-cash-flow-statement-xero-course/ ======================================================== Access Tracking Settings in Xero: https://help.xero.com/us/Settings_Tracking ========================================================
Views: 3177 FitSmallBusiness
FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video was recorded during a one of the Financial Modelling Classes in Pune by Mr. Utkarsh Jain.
Views: 9513 FinTree
http://www.ifrsbox.com How to make the statement of cash flows in a few easy steps. This video shows you the basics for your cash flow statement preparation. Step 1: You should obtain a balance sheet or the statement of financial position as at the end of both current and previous reporting period. You should also obtain the profit or loss and other comprehensive income statement for the current reporting period. Step 2: Calculate the changes in the balance sheet. Step 3: Prepare the blank statement of cash flows and assign all the changes from Step 2 there. Step 4: Make all adjustments for non-cash items and other reclassifications. Step 5: Add up and perform final check. This method is clearly illustrated in this video and in my article here: http://www.ifrsbox.com/how-to-prepare-statement-of-cash-flows-in-7-steps/
Views: 21671 Silvia M. (of IFRSbox)
Cash Flow statements reconcile the Income statement to the Balance sheet and provide the detail of where the airline's cash is coming from and where it is going. In this video you will learn how to read a cash flow statement
Views: 1899 RickZeniRMVideos
This video provides an overview of the Direct Method for preparing the Statement of Cash Flows. The Statement of Cash Flows has three sections: the operating section, the investing section, and the financing section. This is true whether the direct or indirect method is used. The investing section lists the cash flows for the period that pertained to the purchase and sell of productive assets (e.g., property, plant, and equipment or long-term investments). The financing section lists the cash flows that pertained to transactions with the company's owners (issuing stock, repurchasing stock, paying dividends) or creditors (borrowing money, repaying loans). The investing section and financing section are identical regardless of whether the direct method or indirect method is used. With the direct method, the operating section is prepared by taking the company's Income Statement and converting it to a cash-basis. The Income Statement was prepared using accrual accounting (e.g., credit sales were included in sales revenue) so to create the operating section you go line-by-line through the Income Statement and convert each line item to cash basis (e.g., sales revenue becomes cash received from customers). Non-cash charges that appear in the Income Statement (e.g., depreciation expense, amortization expense) are not included in the operating section per the Direct Method because they are non-cash charges. Thus, the operating section prepared according to the direct method presents the company's cash receipts (e.g., cash received from customers, cash received from interest) minus the company's cash payments (e.g., cash paid to suppliers, cash paid for interest, cash paid for income taxes) to arrive at the net cash provided (or used) by operating activities (which is what Net Income would have been had the Income Statement been prepared on a cash-basis instead of an accrual-basis). Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 22066 Edspira
Cash flow statement:- In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. The statement captures both the current operating results and the accompanying changes in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is the International Accounting Standard that deals with cash flow statements. People and groups interested in cash flow statements include: • Accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses • Potential lenders or creditors, who want a clear picture of a company's ability to repay • Potential investors, who need to judge whether the company is financially sound • Potential employees or contractors, who need to know whether the company will be able to afford compensation • Shareholders of the business
Views: 57857 eLearning Meridian
cash flow statement tutorial, cash flow statement explained, cash flow statement analysis, cash flow statement direct method, how to prepare cash flow statement, cash flow statement direct vs indirect, cash flow statement direct vs indirect, Cash flow statement FAR, Financial Accounting Reporting,FAR,FAR CPA Review,FAR CPA Exam,FAR CPA Lectures, Roger CPA FAR,CPA Exam FAR Tips, ,how to pass the CPA exam,how to study for the cpa exam,becker,cpa exam,cpa, CPA exam Tutor,CPA exam Tutoring, video, FAR video, Free FAR video The information in a statement of cash flows should help investors, creditors, and others to assess: (1) the entity’s ability to generate future cash flows; (2) the entity’s ability to pay dividends and meet obligations; (3) the reasons for the difference between net income and net cash flow from operating activities; and (4) the cash and noncash investing and financing transactions during the period. The required presentation of the statement of cash flows provides financial statement users with information about the major sources and uses of cash during the fiscal period. Classification of Cash Flows 3. The statement of cash flows classifies cash receipts and cash payments by operating, investing, and financing activities. Operating activities include all transactions and events that are not investing and financing activities. Operating activities include the cash effects of transactions that enter into the determination of net income, such as cash receipts from sales of goods and services, and cash payments to suppliers and employees for acquisitions of inventory and expenses. Operating activities involve income determination items. 4. Investing activities include (a) making and collecting loans, and (b) acquiring and disposing of investments and productive long-lived assets. Investing activities involve cash flows generally resulting from changes in long-term asset items. 5. Financing activities involve liability and stockholders’ equity items and include (a) obtaining cash from creditors and repaying the amounts borrowed, and (b) obtaining capital from owners and providing them with a return on, and return of, their investment. Financing activities involve cash flows generally resulting from changes in long-term liability and stockholders’ equity items. 6. The typical cash receipts and cash payments of a business entity classified according to operating, investing, and financing activities are shown below. Operating Activities Cash inflows From sales of goods or services. From returns on loans (interest) and on equity securities (dividends). Cash outflows To suppliers for inventory. To employees for services. To government for taxes. To lenders for interest. To others for expenses. Investing Activities Cash inflows From sale of property, plant, and equipment. From sale of debt or equity securities of other entities. From collection of principal on loans to other entities. Cash outflows To purchase property, plant, and equipment. To purchase debt or equity securities of other entities. To make loans to other entities. Financing Activities Cash inflows From sale of equity securities. From issuance of debt (bonds and notes). Cash outflows To stockholders as dividends. To redeem long-term debt or reacquire capital stock.
Views: 33655 Farhat's Accounting Lectures
In the lesson we learn about an approach to preparing the consolidated statement of cash flows. For more information on this topic and other finance topics, visit our website at www.FinanceLearningAcademy.com. (Video 11 of 20)
Views: 8328 Executive Finance