Lecture - Statement of Cash Flows, Part 1 (Intermediate Financial Accounting II)

This lecture will kickoff our discussion of cash flow statements. We will cover the following learning objectives: 1. Understand cash and cash equivalents as well as the business importance of cash flows, and describe the purpose and uses of the statement of cash flows. 2. Identify the major classifications of cash flows and explain the significance of each classification. 3. Prepare the operating activities section of a statement of cash flows using the direct versus the indirect method. 4. Understand the basic steps in the manual preparation of a statement of cash flows. 5. Prepare a statement of cash flows using the direct method. 6. Prepare a statement of cash flows using the indirect method. 7. Prepare a more complex statement of cash flows using both the direct and indirect methods. Chapter 22, Part 1, Lecture #20