The Statement of Cash Flows (2)
Posted on February 22, 2009 - Filed Under Finance
Sunnyvale’s 2004 and 2003 statements are presented in Table 4.3 in the indirect format. To simplify the discussion, the data in the statements have been reduced; they are somewhat shorter and asie ocomprehend than most “real world” statements. Nevertheless, an understanding of the composition
and presentation of Table 4.3 will give readers an excellent appreciation of the value of the statement of cash flows.
The statement of cash flows is formatted to make it easy to understand why and how Sunnyvale’s cash position increased by $5,616,000 during 2004. In other words, it tells us Sunnyvale’s sources of cash and how this cash is used. The statement is divided into three major sections: cash flows from operating
activities, cash flows from investing activities, and cash flows from financing activities.
Taken From : HEALTHCARE FINANCE
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