Join Earl Kay Stice for an in-depth discussion in this video Cash flow example, part of Accounting Foundations.
Here's a cash flow statement for Walmart.…This is an awesome piece of work.…There are three categories in the statement of cash flows.…Operating activities right at the top,…Investing activities just below that,…and then at the bottom, financing activities.…Let's start with operating activities.…Cash from operating activities, Walmart, $25,591,000,000.…That means that the day-to-day operations…that Walmart engaged in during this year…generated $25,000,000,000 worth of cash.…
That's great.…When you look at a cash flow statement…that's the first number you look at,…cash provided by operating activities.…By the way, if that number is negative,…if their operations are actually burning cash, consuming cash,…that's not a good sign.…That's often the case for a start-up company.…Often in a start-up company you're paying…for all your expenses, you're paying your employees,…you're paying for your advertising,…you're paying for all those things,…but you haven't quite yet got your customers…to start paying you.…So it's sometimes the case for start-up companies…
- What is accounting?
- Working with balance sheets and income statements
- Determining the costs of products
- Performing break-even analysis
- Determining average and marginal tax rates
- Understanding tax deductions and credits
Skill Level Appropriate for all
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
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