16
08/26/22 Statement of Cash Flow 1 Statement of Cash Flow and Normalized Statements
04/08/23 Statement of Cash Flow 1
Statement of Cash Flow and Normalized Statements
04/08/23 Statement of Cash Flow 2
Statement of Cash Flows
1. Where have funds come from2. How have funds been used3. Sources
• Liability and Equity• Assets
4. Uses• Liabilities and Equity• Assets
04/08/23 Statement of Cash Flow 3
Sources and Uses of Funds
04/08/23 Statement of Cash Flow 4
Sources and Uses of Funds
04/08/23 Statement of Cash Flow 5
Cash inflows (1) Cash outflows
Generation of Expenditure of fundsfunds in normal in normal operationsoperations
(2)Sale of plant Purchase of plant
and equipment and equipmentLiquidation of Long-term investment
long-terminvestment
(3)Sale of bonds, Retirement or
common stock, repurchase ofpreferred stock, bonds, common stock,and other preferred stock, andsecurities other securities
equalsPayment of cash dividends
Statement of Cash FlowsCash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
+
+
Add items 1, 2, and 3 together to arrive at net increase (decrease)in cash
04/08/23 Statement of Cash Flow 6
Cash Flows from OperatingNet income
Depreciation
Increase in current assets
Decrease in current assets
Increase in current liabilities
Decrease in current liabilities
equals
Net cash flow from operating activities
+
+
+
04/08/23 Statement of Cash Flow 7
KRAMER CORPORATIONIncome StatementDecember 31, 2008
04/08/23 Statement of Cash Flow 8
KRAMER CORPORATIONComparative Balance Sheets
(continued on next slide)
Year-End Year-End Assets: 2007 2008
04/08/23 Statement of Cash Flow 9
KRAMER CORPORATIONComparative Balance Sheets (cont.)
Year-End Year-End 2007 2008
04/08/23 Statement of Cash Flow 10
KRAMER CORPORATIONStatement of Cash Flows
For the Year Ending Dec. 31, 2008
04/08/23 Statement of Cash Flow 11
How do we know common stock dividends?
Beginning Retained Earnings $250,000
+ Net Income 110,000
- Dividends X
Ending Retained Earnings $300,000
X = $60,500
04/08/23 Statement of Cash Flow 12
Hermetic, Inc.2008 Income Statement
($ in thousands)
04/08/23 Statement of Cash Flow 13
Hermetic, Inc.2008 Common Size Income Statement
04/08/23 Statement of Cash Flow 14
Hermetic, Inc.Balance Sheet as of Dec. 31
($ in thousands) Assets 2007 2008
04/08/23 Statement of Cash Flow 15
Hermetic, Inc.Common Size Balance Sheet
2007 2008
04/08/23 Statement of Cash Flow 16
Hermetic, Inc.Statement of Cash Flows 2008
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