Читать книгу Financial Accounting For Dummies - Maire Loughran - Страница 55

There are three sections on a statement of cash flows: operating, investing, and financing. Each section addresses cash ins and outs that the business experiences under completely different circumstances:

 Operating: This section shows items reflecting on the income statement. The three big differences between the cash and accrual methods (see Chapter 6) will be accounts receivable, which is money owed to the company by its customers; accounts payable, which is money the company owes to its vendors; and inventory, which are goods held by the business for resale to customers.

 Investing: This section usually shows the sale and purchase of long-term assets. The purchase of long-term assets reflects on the balance sheet (see Chapter 7). The sale of long-term assets reflects both on the balance sheet and income statement (see Chapter 10): It reflects on the balance sheet as a reduction of the amount of assets the company owns, and on the income statement as a gain or loss from disposing of the asset.

 Financing: The financing section shows the cash effects of long-term liability items (paying or securing loans beyond a period of 12 months from the balance sheet date) and equity items (the sale of company stock and payment of dividends).