Join Jim Stice for an in-depth discussion in this video Overview of the statement of cash flows, part of Running a Profitable Business: Understanding Cash Flow.
- The Statement of Cash Flows is the baby…of the Financial Statements.…The Balance Sheet and the Income Statement have been…around for over 500 years.…In contrast, the Statement of Cash Flows first started…appearing in just 1988, so it's brand new…in an accounting sense.…As we talk about the Statement of Cash Flows, you are…going to think, "This thing is so awesome.…Why didn't they invent it sooner?"…I ask myself the same question.…Now, the idea is so simple: cash.…We're just focusing on cash.…How much cash did you collect?…How much cash did you pay?…We're going to separate these Cash Flows into 3 categories.…
Operating Activities, Investing Activities,…and Financing Activities.…Let me tell you what those 3 activities are…and then we'll look at examples of each one.…Operating Activities are the things you do every single day.…Your operations.…You collect cash from your customers,…and hopefully lots of it.…You pay wages, you pay utilities, you pay your taxes,…you pay your interest.…Those are all things that you do every single day.…
Jim Stice
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.
- 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 Intermediate
Duration
Views
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Introduction
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Welcome1m 45s
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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: Overview of the statement of cash flows