SlideShare ist ein Scribd-Unternehmen logo
1 von 15
Downloaden Sie, um offline zu lesen
Unlocking
Financial Statements
        Day 4
Schedule for Week
   Day 1: Introduction to financial
    statements
   Day 2: Income statement
   Day 3: Balance sheet
   Day 4: Cash flows
   Day 5: Beyond the basics


            Understanding Financial Statements
                                                 2
Statement of Cash Flows




    Understanding Financial Statements
                                         3
Accrual Method
   Records revenues as soon as the “sale”
    occurs
   Records expenses as soon as the bill is
    received
   IE, transactions enter the financial
    records when they occur, not when
    cash changes hands
   Accrual method, therefore, shows
    “scores,” not real spendable dollars
           Understanding Financial Statements
                                                4
Statement of Cash Flows
   Record of cash provided by cash
    sources and of cash consumed by cash
    uses.




           Understanding Financial Statements
                                                5
Cash Flows (cont.)
   Information about use of cash
   Information about investing and
    financing
   Ability to continue as a going concern
   Ability to generate future positive cash
    flows
   Ability to meet obligations and pay
    dividends
            Understanding Financial Statements
                                                 6
Cash Flows
   From operations
   From investing
   From financing




           Understanding Financial Statements
                                                7
Flexibility
   Companies have some flexibility in
    categories for entries.
   Total change in cash, however, will not
    change.
   Overwhelming majority of all accounting
    standards deal with balance sheet and
    income statement, not cash flows
    statement.
            Understanding Financial Statements
                                                 8
Cash and Cash Equivalents
   The category Cash and Cash
    Equivalents shows how much “cash”
    the company had at the start or end of a
    period.
   Note the changes in this category.



            Understanding Financial Statements
                                                 9
Free Cash
   Powerful tool for making a company
    successful
   Powerful indicator for investors
   Cash that is left over after productive
    capacity is maintained or expanded
   Permits expansion, paying down debt,
    buying back shares, etc.

            Understanding Financial Statements
                                                 10
Free Cash
   Several ways to calculate it
   Companies create their own models
   Gross way to do it:
       Cash from operating activities
       Minus capital expenditures
       Equals free cash flow


              Understanding Financial Statements
                                                   11
American Standard Model
   Cash from operating activities
   Minus capital expenditures
   Plus proceeds from disposal of property
   Plus proceeds from sale and
    leasebacks
   Equals free cash flow

             Understanding Financial Statements
                                                  12
VF Model
   Cash from operating
   Minus cash used in investing




           Understanding Financial Statements
                                                13
Finding Company’s Formula
   Often requires you to do some digging
    in the 10-K




           Understanding Financial Statements
                                                14
Presented by:

   James K. Gentry, Ph.D.
   Clyde M. Reed Teaching Professor
   School of Journalism and Mass Communications
   University of Kansas
   jgentry@ku.edu




             Understanding Financial Statements
                                                   15

Weitere ähnliche Inhalte

Was ist angesagt?

How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)
How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)
How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)Financial Poise
 
The theory and practice of corporate
The theory and practice of corporate The theory and practice of corporate
The theory and practice of corporate Babasab Patil
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow StatementLoanXpress
 
Business Valuation and Government Contractors
Business Valuation and Government ContractorsBusiness Valuation and Government Contractors
Business Valuation and Government ContractorsDecosimoCPAs
 
Cash flow statement
Cash flow statement Cash flow statement
Cash flow statement Vishal Kapoor
 
Periodicity Assumption | Accounting
Periodicity Assumption | AccountingPeriodicity Assumption | Accounting
Periodicity Assumption | AccountingTransweb Global Inc
 
How to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital FundingHow to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital Fundingideatoipo
 
Cash analysis & management
Cash analysis & managementCash analysis & management
Cash analysis & managementUrusha Hada
 
DT 38-39 Cash Forecasting - The Treasurer - July 2015
DT 38-39 Cash Forecasting - The Treasurer - July 2015DT 38-39 Cash Forecasting - The Treasurer - July 2015
DT 38-39 Cash Forecasting - The Treasurer - July 2015David Tilston
 
Factoring in switzerland
Factoring in switzerlandFactoring in switzerland
Factoring in switzerlandarpitgupta1093
 
Volatility of Fair Value Accounting from a Reinsurer's Perspective
Volatility of Fair Value Accounting from a Reinsurer's PerspectiveVolatility of Fair Value Accounting from a Reinsurer's Perspective
Volatility of Fair Value Accounting from a Reinsurer's Perspectivemfrings
 

Was ist angesagt? (20)

Unlocking Financial Statements - Day 4
Unlocking Financial Statements - Day 4Unlocking Financial Statements - Day 4
Unlocking Financial Statements - Day 4
 
How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)
How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)
How to Read a Balance Sheet - And Why You Care! (Series: MBA Boot Camp)
 
Balance of payments
Balance of paymentsBalance of payments
Balance of payments
 
The theory and practice of corporate
The theory and practice of corporate The theory and practice of corporate
The theory and practice of corporate
 
Day Four with Jimmy Gentry: Understanding Financial Statements
Day Four with Jimmy Gentry: Understanding Financial StatementsDay Four with Jimmy Gentry: Understanding Financial Statements
Day Four with Jimmy Gentry: Understanding Financial Statements
 
Cash Flow Statement
Cash Flow StatementCash Flow Statement
Cash Flow Statement
 
Cash flow analysis
Cash flow analysisCash flow analysis
Cash flow analysis
 
Unlocking Financial Statements - Day 4
Unlocking Financial Statements - Day 4Unlocking Financial Statements - Day 4
Unlocking Financial Statements - Day 4
 
Business Valuation and Government Contractors
Business Valuation and Government ContractorsBusiness Valuation and Government Contractors
Business Valuation and Government Contractors
 
Financial terms
Financial termsFinancial terms
Financial terms
 
Accounting
AccountingAccounting
Accounting
 
Cash flow statement
Cash flow statement Cash flow statement
Cash flow statement
 
Periodicity Assumption | Accounting
Periodicity Assumption | AccountingPeriodicity Assumption | Accounting
Periodicity Assumption | Accounting
 
How to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital FundingHow to Position Your Startup for Venture Capital Funding
How to Position Your Startup for Venture Capital Funding
 
Cash analysis & management
Cash analysis & managementCash analysis & management
Cash analysis & management
 
Finance
Finance Finance
Finance
 
DT 38-39 Cash Forecasting - The Treasurer - July 2015
DT 38-39 Cash Forecasting - The Treasurer - July 2015DT 38-39 Cash Forecasting - The Treasurer - July 2015
DT 38-39 Cash Forecasting - The Treasurer - July 2015
 
Factoring in switzerland
Factoring in switzerlandFactoring in switzerland
Factoring in switzerland
 
Volatility of Fair Value Accounting from a Reinsurer's Perspective
Volatility of Fair Value Accounting from a Reinsurer's PerspectiveVolatility of Fair Value Accounting from a Reinsurer's Perspective
Volatility of Fair Value Accounting from a Reinsurer's Perspective
 
Accounting standard 13
Accounting standard  13Accounting standard  13
Accounting standard 13
 

Andere mochten auch

“Using Census Data in Your Stories” by Brandon Quester and Evan Wyloge
“Using Census Data in Your Stories” by Brandon Quester and Evan Wyloge“Using Census Data in Your Stories” by Brandon Quester and Evan Wyloge
“Using Census Data in Your Stories” by Brandon Quester and Evan WylogeReynolds Center for Business Journalism
 
The Closed World Of Company Data
The Closed World Of Company DataThe Closed World Of Company Data
The Closed World Of Company DataChris Taggart
 
Ratio Analysis of Coca-Cola
Ratio Analysis of Coca-ColaRatio Analysis of Coca-Cola
Ratio Analysis of Coca-ColaWajid Ali
 
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...Subhrajyoti Parida
 
Financial ratios analysis project at Nestle and Engro Foods
Financial ratios analysis project at Nestle and Engro FoodsFinancial ratios analysis project at Nestle and Engro Foods
Financial ratios analysis project at Nestle and Engro Foodsraboz
 
Understanding financial statements
Understanding financial statementsUnderstanding financial statements
Understanding financial statementsGeni Whitehouse
 
Financial Accounting
Financial AccountingFinancial Accounting
Financial Accountingashu1983
 

Andere mochten auch (13)

“Using Census Data in Your Stories” by Brandon Quester and Evan Wyloge
“Using Census Data in Your Stories” by Brandon Quester and Evan Wyloge“Using Census Data in Your Stories” by Brandon Quester and Evan Wyloge
“Using Census Data in Your Stories” by Brandon Quester and Evan Wyloge
 
The Closed World Of Company Data
The Closed World Of Company DataThe Closed World Of Company Data
The Closed World Of Company Data
 
Bread Crumb Exercise: How Ready Are You? by Ron Campbell
Bread Crumb Exercise: How Ready Are You? by Ron CampbellBread Crumb Exercise: How Ready Are You? by Ron Campbell
Bread Crumb Exercise: How Ready Are You? by Ron Campbell
 
The Hidden World of Nonprofits by Ron Campbell
The Hidden World of Nonprofits by Ron CampbellThe Hidden World of Nonprofits by Ron Campbell
The Hidden World of Nonprofits by Ron Campbell
 
Investigating Private Companies by Chris Roush
Investigating Private Companies by Chris RoushInvestigating Private Companies by Chris Roush
Investigating Private Companies by Chris Roush
 
“The Numbers in Sports” by Dash Davidson
“The Numbers in Sports” by Dash Davidson“The Numbers in Sports” by Dash Davidson
“The Numbers in Sports” by Dash Davidson
 
“10 Databases You Can Use Today” by Steve Doig and Evan Wyloge
“10 Databases You Can Use Today” by Steve Doig and Evan Wyloge“10 Databases You Can Use Today” by Steve Doig and Evan Wyloge
“10 Databases You Can Use Today” by Steve Doig and Evan Wyloge
 
Ire 2016 reynolds talk steve doig
Ire 2016 reynolds talk steve doigIre 2016 reynolds talk steve doig
Ire 2016 reynolds talk steve doig
 
Ratio Analysis of Coca-Cola
Ratio Analysis of Coca-ColaRatio Analysis of Coca-Cola
Ratio Analysis of Coca-Cola
 
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...
 
Financial ratios analysis project at Nestle and Engro Foods
Financial ratios analysis project at Nestle and Engro FoodsFinancial ratios analysis project at Nestle and Engro Foods
Financial ratios analysis project at Nestle and Engro Foods
 
Understanding financial statements
Understanding financial statementsUnderstanding financial statements
Understanding financial statements
 
Financial Accounting
Financial AccountingFinancial Accounting
Financial Accounting
 

Ähnlich wie Unlocking Financial Statements (2012) - Day 4 by Jimmy Gentry

Finance for non finance
Finance for non financeFinance for non finance
Finance for non financeJai Sethi
 
Cash flow & fund flow statement
Cash flow & fund flow statementCash flow & fund flow statement
Cash flow & fund flow statementbhautik virani
 
Essential of Technology Entrep. & Innovation-Chapter ten financing strategy ...
Essential of Technology Entrep. & Innovation-Chapter ten  financing strategy ...Essential of Technology Entrep. & Innovation-Chapter ten  financing strategy ...
Essential of Technology Entrep. & Innovation-Chapter ten financing strategy ...Motaz Agamawi
 
Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource
Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource
Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource AlleneMcclendon878
 
Accounting for manager
Accounting for managerAccounting for manager
Accounting for managerNeha Sharma
 
The importance of cash flow in stock picking
The importance of cash flow in stock pickingThe importance of cash flow in stock picking
The importance of cash flow in stock pickingAlpesh Patel
 
Lecture 5_ Cash flow statement.pptx
Lecture 5_ Cash flow statement.pptxLecture 5_ Cash flow statement.pptx
Lecture 5_ Cash flow statement.pptxMuhammad wajid Raza
 
Financial Reporting for Entrepreneurs
Financial Reporting for EntrepreneursFinancial Reporting for Entrepreneurs
Financial Reporting for EntrepreneursDickson Consulting
 
Overview Of Cash Flow Management
Overview Of Cash Flow ManagementOverview Of Cash Flow Management
Overview Of Cash Flow ManagementAmanda Barber
 
ed1fc1c5-6a4e-41c2-9647-2b05da7d12f7.pdf
ed1fc1c5-6a4e-41c2-9647-2b05da7d12f7.pdfed1fc1c5-6a4e-41c2-9647-2b05da7d12f7.pdf
ed1fc1c5-6a4e-41c2-9647-2b05da7d12f7.pdfYassinDyab2
 
A Statement Of Cash Flow
A Statement Of Cash FlowA Statement Of Cash Flow
A Statement Of Cash FlowDiana Oliva
 
Cash Flow Statement with examples
Cash Flow Statement with examples Cash Flow Statement with examples
Cash Flow Statement with examples Gunjan Rastogi
 

Ähnlich wie Unlocking Financial Statements (2012) - Day 4 by Jimmy Gentry (20)

Chapter12s
Chapter12sChapter12s
Chapter12s
 
Finance for non finance
Finance for non financeFinance for non finance
Finance for non finance
 
Cash flow & fund flow statement
Cash flow & fund flow statementCash flow & fund flow statement
Cash flow & fund flow statement
 
Accounting is 7 slides project
Accounting is 7 slides projectAccounting is 7 slides project
Accounting is 7 slides project
 
Cash Flow Hedging
Cash Flow HedgingCash Flow Hedging
Cash Flow Hedging
 
finance.ppt
finance.pptfinance.ppt
finance.ppt
 
Essential of Technology Entrep. & Innovation-Chapter ten financing strategy ...
Essential of Technology Entrep. & Innovation-Chapter ten  financing strategy ...Essential of Technology Entrep. & Innovation-Chapter ten  financing strategy ...
Essential of Technology Entrep. & Innovation-Chapter ten financing strategy ...
 
Financial Tips for Survival
Financial Tips for SurvivalFinancial Tips for Survival
Financial Tips for Survival
 
Financial Management
Financial ManagementFinancial Management
Financial Management
 
Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource
Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource
Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource
 
Accounting for manager
Accounting for managerAccounting for manager
Accounting for manager
 
The importance of cash flow in stock picking
The importance of cash flow in stock pickingThe importance of cash flow in stock picking
The importance of cash flow in stock picking
 
Lecture 5_ Cash flow statement.pptx
Lecture 5_ Cash flow statement.pptxLecture 5_ Cash flow statement.pptx
Lecture 5_ Cash flow statement.pptx
 
Financial Reporting for Entrepreneurs
Financial Reporting for EntrepreneursFinancial Reporting for Entrepreneurs
Financial Reporting for Entrepreneurs
 
Overview Of Cash Flow Management
Overview Of Cash Flow ManagementOverview Of Cash Flow Management
Overview Of Cash Flow Management
 
Cash flow analysis
Cash flow analysisCash flow analysis
Cash flow analysis
 
ed1fc1c5-6a4e-41c2-9647-2b05da7d12f7.pdf
ed1fc1c5-6a4e-41c2-9647-2b05da7d12f7.pdfed1fc1c5-6a4e-41c2-9647-2b05da7d12f7.pdf
ed1fc1c5-6a4e-41c2-9647-2b05da7d12f7.pdf
 
9780273713654 pp06
9780273713654 pp069780273713654 pp06
9780273713654 pp06
 
A Statement Of Cash Flow
A Statement Of Cash FlowA Statement Of Cash Flow
A Statement Of Cash Flow
 
Cash Flow Statement with examples
Cash Flow Statement with examples Cash Flow Statement with examples
Cash Flow Statement with examples
 

Mehr von Reynolds Center for Business Journalism

“Developing an Effective Business Journalism Syllabus - Leverage! Using Exist...
“Developing an Effective Business Journalism Syllabus - Leverage! Using Exist...“Developing an Effective Business Journalism Syllabus - Leverage! Using Exist...
“Developing an Effective Business Journalism Syllabus - Leverage! Using Exist...Reynolds Center for Business Journalism
 
“Developing an Effective Business Journalism Syllabus - Building the Syllabus...
“Developing an Effective Business Journalism Syllabus - Building the Syllabus...“Developing an Effective Business Journalism Syllabus - Building the Syllabus...
“Developing an Effective Business Journalism Syllabus - Building the Syllabus...Reynolds Center for Business Journalism
 
“Marketing Your Work and Engaging Your Audience - Marketing Your Work” by Eli...
“Marketing Your Work and Engaging Your Audience - Marketing Your Work” by Eli...“Marketing Your Work and Engaging Your Audience - Marketing Your Work” by Eli...
“Marketing Your Work and Engaging Your Audience - Marketing Your Work” by Eli...Reynolds Center for Business Journalism
 
“Marketing Your Work and Engaging Your Audience - Engaging Audiences to Promo...
“Marketing Your Work and Engaging Your Audience - Engaging Audiences to Promo...“Marketing Your Work and Engaging Your Audience - Engaging Audiences to Promo...
“Marketing Your Work and Engaging Your Audience - Engaging Audiences to Promo...Reynolds Center for Business Journalism
 
“Marketing Your Work and Engaging Your Audience - Social Media Strategy and A...
“Marketing Your Work and Engaging Your Audience - Social Media Strategy and A...“Marketing Your Work and Engaging Your Audience - Social Media Strategy and A...
“Marketing Your Work and Engaging Your Audience - Social Media Strategy and A...Reynolds Center for Business Journalism
 
“The Numbers in Sports - Investigating Sports Non-Profits" by Craig Harris
“The Numbers in Sports - Investigating Sports Non-Profits" by Craig Harris“The Numbers in Sports - Investigating Sports Non-Profits" by Craig Harris
“The Numbers in Sports - Investigating Sports Non-Profits" by Craig HarrisReynolds Center for Business Journalism
 

Mehr von Reynolds Center for Business Journalism (20)

“The Numbers in Sports” by Brett Kurland
“The Numbers in Sports” by Brett Kurland“The Numbers in Sports” by Brett Kurland
“The Numbers in Sports” by Brett Kurland
 
“The Business of Pot” by Ricardo Baca and Kevin Dale
“The Business of Pot” by Ricardo Baca and Kevin Dale“The Business of Pot” by Ricardo Baca and Kevin Dale
“The Business of Pot” by Ricardo Baca and Kevin Dale
 
“Developing an Effective Business Journalism Syllabus - Leverage! Using Exist...
“Developing an Effective Business Journalism Syllabus - Leverage! Using Exist...“Developing an Effective Business Journalism Syllabus - Leverage! Using Exist...
“Developing an Effective Business Journalism Syllabus - Leverage! Using Exist...
 
“Developing an Effective Business Journalism Syllabus - Building the Syllabus...
“Developing an Effective Business Journalism Syllabus - Building the Syllabus...“Developing an Effective Business Journalism Syllabus - Building the Syllabus...
“Developing an Effective Business Journalism Syllabus - Building the Syllabus...
 
“Marketing Your Work and Engaging Your Audience - Marketing Your Work” by Eli...
“Marketing Your Work and Engaging Your Audience - Marketing Your Work” by Eli...“Marketing Your Work and Engaging Your Audience - Marketing Your Work” by Eli...
“Marketing Your Work and Engaging Your Audience - Marketing Your Work” by Eli...
 
“Marketing Your Work and Engaging Your Audience - Engaging Audiences to Promo...
“Marketing Your Work and Engaging Your Audience - Engaging Audiences to Promo...“Marketing Your Work and Engaging Your Audience - Engaging Audiences to Promo...
“Marketing Your Work and Engaging Your Audience - Engaging Audiences to Promo...
 
“Marketing Your Work and Engaging Your Audience - Social Media Strategy and A...
“Marketing Your Work and Engaging Your Audience - Social Media Strategy and A...“Marketing Your Work and Engaging Your Audience - Social Media Strategy and A...
“Marketing Your Work and Engaging Your Audience - Social Media Strategy and A...
 
“Teaching Business Journalism - Finding Your Audience" by Randy Smith
“Teaching Business Journalism - Finding Your Audience" by Randy Smith“Teaching Business Journalism - Finding Your Audience" by Randy Smith
“Teaching Business Journalism - Finding Your Audience" by Randy Smith
 
“Teaching Business Journalism - Organizing Your Course" by Pam Luecke
“Teaching Business Journalism - Organizing Your Course" by Pam Luecke“Teaching Business Journalism - Organizing Your Course" by Pam Luecke
“Teaching Business Journalism - Organizing Your Course" by Pam Luecke
 
“The Numbers in Sports - Investigating Sports Non-Profits" by Craig Harris
“The Numbers in Sports - Investigating Sports Non-Profits" by Craig Harris“The Numbers in Sports - Investigating Sports Non-Profits" by Craig Harris
“The Numbers in Sports - Investigating Sports Non-Profits" by Craig Harris
 
“Covering Campaign Finance” by Leslie Wayne
“Covering Campaign Finance” by Leslie Wayne“Covering Campaign Finance” by Leslie Wayne
“Covering Campaign Finance” by Leslie Wayne
 
“The Economics of Immigration” by Fernanda Santos
“The Economics of Immigration” by Fernanda Santos“The Economics of Immigration” by Fernanda Santos
“The Economics of Immigration” by Fernanda Santos
 
“Where to Find Economic Data”
“Where to Find Economic Data”“Where to Find Economic Data”
“Where to Find Economic Data”
 
“Building Winning Business Investigations” by Glenn Hall
“Building Winning Business Investigations” by Glenn Hall“Building Winning Business Investigations” by Glenn Hall
“Building Winning Business Investigations” by Glenn Hall
 
Ag Media Summit - 30 Agriculture Stories
Ag Media Summit - 30 Agriculture StoriesAg Media Summit - 30 Agriculture Stories
Ag Media Summit - 30 Agriculture Stories
 
Data Journalism 101 - Part 3 by Michael J. Berens
Data Journalism 101 - Part 3 by Michael J. BerensData Journalism 101 - Part 3 by Michael J. Berens
Data Journalism 101 - Part 3 by Michael J. Berens
 
Data Journalism 101 - Part 1 by Michael J. Berens
Data Journalism 101 - Part 1 by Michael J. BerensData Journalism 101 - Part 1 by Michael J. Berens
Data Journalism 101 - Part 1 by Michael J. Berens
 
Data Journalism 101 - Part 2 by Michael J. Berens
Data Journalism 101 - Part 2 by Michael J. BerensData Journalism 101 - Part 2 by Michael J. Berens
Data Journalism 101 - Part 2 by Michael J. Berens
 
Finding a Niche in Business Reporting by Angel Gonzalez
Finding a Niche in Business Reporting by Angel GonzalezFinding a Niche in Business Reporting by Angel Gonzalez
Finding a Niche in Business Reporting by Angel Gonzalez
 
What's Next in Covering the Affordable Care Act - Tami Luhby
What's Next in Covering the Affordable Care Act - Tami LuhbyWhat's Next in Covering the Affordable Care Act - Tami Luhby
What's Next in Covering the Affordable Care Act - Tami Luhby
 

Kürzlich hochgeladen

127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP InternationalManu Mitra
 
reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfreStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfKen Fuller
 
wealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxwealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxAnuragBhakuni4
 
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsChapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsMd Shaifullar Rabbi
 
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Md Shaifullar Rabbi
 
Blockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfBlockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfVISHNURAJSSNSCEAD
 
10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdfEducationView
 
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FaHaD .H. NooR
 
How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?StrengthsTheatre
 
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxkids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxJagrutiSononee
 
Moaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects PortfolioMoaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects Portfoliomoaaz el-shayeb
 
Audhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfAudhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfaudhinafh1
 
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFJulia Kaye
 
asdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsasdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsJulia Kaye
 
Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................calvinjamesmappala
 
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxSTORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxsheenam bansal
 
Nashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashonHolloway
 

Kürzlich hochgeladen (17)

127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International
 
reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfreStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
 
wealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxwealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptx
 
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsChapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
 
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
 
Blockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfBlockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdf
 
10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf
 
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
 
How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?
 
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxkids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
 
Moaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects PortfolioMoaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects Portfolio
 
Audhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfAudhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdf
 
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
 
asdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsasdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffs
 
Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................
 
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxSTORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
 
Nashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - Priv
 

Unlocking Financial Statements (2012) - Day 4 by Jimmy Gentry

  • 2. Schedule for Week  Day 1: Introduction to financial statements  Day 2: Income statement  Day 3: Balance sheet  Day 4: Cash flows  Day 5: Beyond the basics Understanding Financial Statements 2
  • 3. Statement of Cash Flows Understanding Financial Statements 3
  • 4. Accrual Method  Records revenues as soon as the “sale” occurs  Records expenses as soon as the bill is received  IE, transactions enter the financial records when they occur, not when cash changes hands  Accrual method, therefore, shows “scores,” not real spendable dollars Understanding Financial Statements 4
  • 5. Statement of Cash Flows  Record of cash provided by cash sources and of cash consumed by cash uses. Understanding Financial Statements 5
  • 6. Cash Flows (cont.)  Information about use of cash  Information about investing and financing  Ability to continue as a going concern  Ability to generate future positive cash flows  Ability to meet obligations and pay dividends Understanding Financial Statements 6
  • 7. Cash Flows  From operations  From investing  From financing Understanding Financial Statements 7
  • 8. Flexibility  Companies have some flexibility in categories for entries.  Total change in cash, however, will not change.  Overwhelming majority of all accounting standards deal with balance sheet and income statement, not cash flows statement. Understanding Financial Statements 8
  • 9. Cash and Cash Equivalents  The category Cash and Cash Equivalents shows how much “cash” the company had at the start or end of a period.  Note the changes in this category. Understanding Financial Statements 9
  • 10. Free Cash  Powerful tool for making a company successful  Powerful indicator for investors  Cash that is left over after productive capacity is maintained or expanded  Permits expansion, paying down debt, buying back shares, etc. Understanding Financial Statements 10
  • 11. Free Cash  Several ways to calculate it  Companies create their own models  Gross way to do it:  Cash from operating activities  Minus capital expenditures  Equals free cash flow Understanding Financial Statements 11
  • 12. American Standard Model  Cash from operating activities  Minus capital expenditures  Plus proceeds from disposal of property  Plus proceeds from sale and leasebacks  Equals free cash flow Understanding Financial Statements 12
  • 13. VF Model  Cash from operating  Minus cash used in investing Understanding Financial Statements 13
  • 14. Finding Company’s Formula  Often requires you to do some digging in the 10-K Understanding Financial Statements 14
  • 15. Presented by:  James K. Gentry, Ph.D.  Clyde M. Reed Teaching Professor  School of Journalism and Mass Communications  University of Kansas  jgentry@ku.edu Understanding Financial Statements 15