OPERATING, INVESTING, AND FINANCING ACTIVITIES
From customers paying on account for the sale of goods or services.
From customers for cash sales.
From returns on loans (interest) and on equity securities (dividends).
To suppliers on account for purchases of inventory and other goods and services.
To or on behalf of employees for services and benefits.
To government for taxes.
To creditors for interest.
Proceeds on the sale of property, plant, or equipment.
Proceeds on the sale of investments in debt or equity securities of other entities.
Proceeds from the collection of principal on loans to other entities.
To purchase property, plant, or equipment.
To purchase investments in debt or equity securities of other entities.
To make loans to other entities.
Proceeds on the sale of shares of capital stock.
Proceeds on the issuance of debt (bonds or notes).
To reacquire shares of capital stock.
To redeem debt.
To shareholders for dividends
FORMAT OF STATEMENT OF CASH FLOWS
Company Name Statement of Cash Flows Period Covered
Operating activities Cash from operations
Net income before extraordinary operating expense $XX
Net change in working capital balances related to operations 1 XX
Future (deferred) income taxes XX
Income from equity-accounted investments (XX) XX
Loss from product recall costs paid (XX)
Cash flow generated by operating activities XXX
Purchase of property, plant, and equipment (XX)
Proceeds from disposals of plant and equipment XX
Payments for development costs capitalized (XX)
Cash flow used in investing activities (XX)
Financing activities Dividends paid (XX)
Repayments of long-term debt (XX)
Proceeds on the issuance of common shares XX
Cash flow generated by financing activities XX
Change in cash and cash equivalents during the year XX
Cash and cash equivalents at beginning of the year XX
Cash and cash equivalents at end of the year $ XX
1 Consisting of changes in receivables, inventories, prepaid expenses, accounts payable, taxes payable and other accrued charges.
INDIRECT METHOD: ADDITIONS AND DEDUCTIONS TO AND FROM NET INCOME
INDIRECT METHOD: ADDITIONS AND DEDUCTIONS
Amortization of intangibles and deferred charges
Amortization of bond discount1
Increase in future (deferred) income tax
Loss on investment—equity method
Loss on sale of plant assets
Decrease in receivables
Decrease in inventories
Decrease in prepaid expense
Increase in accounts payable
Increase in accrued liabilities
Decrease in future (deferred) income tax
Income on investment—equity method
Gain on the sale of plant assets
Increase in receivables
Increase in inventories
Increase in prepaid expense
Decrease in accounts payable
Decrease in accrued liabilities
Net cash flow from operating activities
SCHEDULE OF CHANGES FROM THE ACCRUAL
TO CASH BASIS AMOUNTS—DIRECT METHOD ILLUSTRATED
EASTERN WINDOW PRODUCTS LIMITED SCHEDULE OF CHANGES FROM ACCRUAL TO CASH BASIS REVENUES AND EXPENSES
From Income statement
+ 10,000 (a)
+ 602,000 1
Cost of goods sold
Other operating expenses
- 9,000 (b)
+ 1,500 (c)
+ 10,900 (h)
- 402,600 2
Salaries and wages expense
- 700 (j)
- 55,700 3
- 16,200 4
Income tax expense