Join Jim Stice for an in-depth discussion in this video Introduction to the statement of cash flows, part of Running a Profitable Business: Understanding Cash Flow.
- The Statement of Cash Flows has three sections.…- Okay, don't tell me.…Okay, I don't know, go ahead and tell me.…- Yeah.…The three sections are Operating activities,…Investing activities, and Financing activities.…- Okay, which of these three sections is the most important?…- Well, the most important section…of the Statement of Cash Flows is Operating activities.…The Operating activities are the things…that a business does every day,…such as collect cash from customers,…pay employees, pay suppliers for inventory purchases.…Paying for electricity, and so forth.…- Why is the Operating activity section the most important?…- Because the first thing we wanna know…about a company's cash flow,…is whether the company's daily operations…are generating cash, or are using cash.…
- Okay, so what's the next most important thing,…in the Statement of Cash Flows?…- The next most important thing is to compare…the amount of cash generated from Operating activities…to the amount of cash needed for Investing activities.…- All right, but what are Investing activities?…
Jim Stice
Earl Kay Stice
Released
9/16/2015Want to hear more from Jim and Kay? Learn about all three types of accounting—financial, managerial, and income tax—in their Accounting Fundamentals course.
This course qualifies for 1.75 Category A professional development units (PDUs) through Lynda.com, PMI Registered Education Provider #4101.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Differentiating between net income and operating cash flow
- Categorizing cash flow
- Using financial data to deduce cash flow
- Managing operating, investing, and financing cash flows
- Typical cash flow patterns
- Converting net income into operating cash flow
- Improving operating cash flow
Skill Level Appropriate for all
Duration
Views
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Introduction
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Welcome1m 49s
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1. The Importance of Cash Flow Analysis
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2. Overview of the Statement of Cash Flows
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3. Using Cash Flow Data to Make a Loan Decision
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Company A: Help!4m 13s
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Company B: Strange2m 4s
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Company C: Normal2m 38s
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Company D: Cash cow2m 30s
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4. Converting Income Statement Data into Operating Cash Flow Data
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5. Managing Cash Flow
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Managing operating cash flow5m 24s
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Managing investing cash flow4m 59s
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Managing financing cash flow3m 55s
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6. Cash Flow Numbers for Some Real Companies
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The danger of free cash flow3m 56s
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Conclusion
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Wrap-up2m 36s
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Video: Introduction to the statement of cash flows