Preparing and Analyzing the Statement of Cash Flows

Learning Objectives

• To discuss how to prepare a statement of cash flows under both the direct and indirect formats from two balance sheets and an income statement.
• To identify the key elements of cash flow analysis and how they relate to each other.
• To identify various cash flow profiles and describe what these profiles mean concerning the firm’s cash management strategy.
• To analyze the statements of cash flow published by well-known companies from various industries.

Course Description

Everybody knows that "cash is king", but how should you incorporate this idea into your analysis of an organization? While most people are somewhat familiar with the Balance Sheet and Income Statement, the Cash Flow Statement can be a bit of a mystery.

The statement of cash flows is often viewed as the most important financial statement for assessing a company’s performance, liquidity, and financial health. However, it is also viewed as the most complex financial statement to prepare and analyze.  

In this CPE webinar, the speaker Jamie Pratt will walk through the regulatory framework around the statement of cash flows, show how to prepare the statement under both direct and indirect methods, and explain how to analyze the data on the statement using key financial ratios

Major topics covered in this CPE Accounting course:

• Preparation of Cash flow statement
• Presentation of both the direct and indirect forms of presentation
• Reviewing the key elements of cash flow assessment and the identification and interpretation of the various cash flow profiles
• Analyzing real-world statements of cash flows and using these cash flow profiles to assess the cash management strategies of seven different firms at different stages of development experiencing different levels of success: Pinterest, General Electric, Airbnb, Home Depot, Caravan, Lyft, and Blue Apron

Here are links to your interest: Certificate Course on Financial Reporting Analysis

Overview

• New Version of Edgar Allen Poe's famous poem - The Raven

  3 mins
• How to account Families?

  12 mins
• Explaining the changes in the accounts

  19 mins
• The reduction in the Cash Account Balance explained

  36 mins
• Change perspectives from Preparer to Analyst

  49 mins
• Two Fundamental issues of Cash Flow Analysis

  63 mins
• Cash flow profile - Using operations and assets to reduce debt and/or Equity

  72 mins
• Cash flow profile - financing operating losses and growth by issuing debt and/or equity

  86 mins