Description

The statement of cash flows is a critical component of a company's set of financial statements. Cover the proper preparation of the statement, including analysis techniques. Learn how financial statements enable CPAs and financial professionals to see a business's cash inflows and outflows relating to operating, investing and financing activities and evaluation of liquidity and quality of earnings. Case studies and sample documentation reinforce significant concepts and help participants apply the analysis techniques discussed.

Target Audience

CPAs and financial professionals.

Course Objectives

• Recognize how to prepare a cash flow statement
• Determine how to differentiate between operating, investing and financing cash flows
• Identify issues to comply with cash flow statement reporting requirements included in GAAP Codification Topic No. 230
• Determine how to effectively analyze the cash flow statement when assessing entity performance

Subjects

• Major provisions of GAAP Codification Topic No. 230
• Statement classification issues
• Reporting operating cash flows: Direct and indirect methods
• Preparing the statement: Workpaper techniques
• Useful cash flow ratios
• Bankruptcy prediction using the statement of cash flows

Prerequisites

General knowledge in Excel.