100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary finance & control year 2 book material and class material $5.03   Add to cart

Class notes

Summary finance & control year 2 book material and class material

2 reviews
 53 views  3 purchases
  • Course
  • Institution
  • Book

Summary of finance & control International Business thuas year 2. Including class material and book material to be exam ready.

Preview 2 out of 15  pages

  • April 9, 2021
  • 15
  • 2019/2020
  • Class notes
  • International business
  • All classes

2  reviews

review-writer-avatar

By: Shengjie • 3 year ago

review-writer-avatar

By: annevw1 • 3 year ago

avatar-seller
2.4 Cash flow statement - indirect method
Statement of cash flows definition:
 accounting statement that shows earned cash usage in a certain period
 info comes from income statement & balance sheet

Statement of cash flows 3 sections:
1. operating activity (net income +- non-cash entries for operations)
2. investment activity (cash used for investment)
3. financing activity (cash flow of firms to investors and vice-versa)

Operating activity
 Net income
o + depreciation (this was deducted to compute net income, but there was no
actual cash outflow)
o + non-cash expenses
o + deferred taxes (uitgestelde)
o - accounts receivables (sale is made but cash is not available)
o + accounts payable (borrowed money that can be used)
o - inventory increase (money spend)
o + inventory decrease (money made)

Investment activity
capital expenditures
 purchases of new property, plant & equipment (long-term investments)
o deduct when computing cashflows

Financing activity
 retained earnings = net income - dividends
 payout ratio = dividends / net income
o ratio of a firm’s dividends to its net income.
o % of net income spend on dividends
 selling shares > add cash
 issue debts (increase borrowings) > add cash

income statement
sales
- cogs
gross profit
- operating expenses
- r&d expenses
- administrative expenses
- depreciation
income from operations
-non operating expenses
net income

, dividends paid = net income - retained earnings

balance sheet trick
Asset goes up - money goes down Liability/equity goes up - cash goes up

Asset goes down - money goes up Liability/equity goes down - cash goes
down


Check by:
 total cash flow = cash 2019 - cash 2018


Operating Investing Financing
Inflows Inflows Inflows
 sale goods/services  sale of PPE  sale of ordinary
 interest/dividends  sale of investment shares
received  principal on loans to  issue long-debt/ LT
 ST liabilities others liabilities
Outflows Outflows Outflows
 paying suppliers  purchase PPE  pay shareholders
(increase inventory)  purchase investment (dividends)
 paying employees  make loans to others  redeem long-term
(wages) debts
 paying government  reacquire ordinary
(taxes) shares
 paying lenders
(interest)
 expenses

\_________________________________________________________________________/
add all these up and you will see the net income

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller kimlaura. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $5.03. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

82191 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$5.03  3x  sold
  • (2)
  Add to cart