Big Picture: EasyLearn s Cash Flow Statements

Transcription

1 Consolidated Statements of Cash Flows Three years ended December 25,1999 (in millions -except per share amounts) Cash and cash equivalents, beginning of year $2,038 $4,102 $4,165 Cash flows provided by (used for) operations: Net income 7,314 6,068 6,945 Adjustments to reconcile net income to net cash provided by (used for) operations Depreciation 3,186 2,807 2,192 Amortization of goodwill and other acquisition-related intangibles Purchased in-process research and development Gains on sales of marketable strategic equity securities (883) (185) (106) Net loss on retirements of property, plant, and equipment Deferred taxes (219) 77 6 Change in assets and liabilities Accounts receivable 153 (38) 285 Inventories (404) Accounts payable 79 (180) 438 Accrued compensation and benefits Income taxes payable 726 (211) 17 Tax benefit from employee stock options Other assets and liabilities (819) (378) Cash flows provided by (used for) investing activities: Additions to property, plant, and equipment (3,403) (3,55 Acquisitions, net of cash received (2,979) Purchases of available-for-sale investments (7,055) ales of available for sale investments 831 es and other changes in available-for-sale investments 7 Cash Flow Statements» What s Behind Cash Flow Statements» Big Picture» Scenic Video Slides Total adjustments 4,021 2,994 Net cash provided by operating activities 11,335 9,062 for) investing activities Big Picture: EasyLearn s Cash Flow Statements C O N T E N T S Contents Agenda....2 BSE matrix....3 SCF effects: entry by entry: E1- issue stock for cash....4 SCF effects: entry by entry: E2 - sale on account...5 SCF effects: entry by entry: E3 - receivable collection... 7 SCF effects: entry by entry: E4 - advertise on account...9 SCF effects: entry by entry: E5 - payables payment SCF effects: grouping: receivables SCF effects: grouping: payables Adjustment signs Take aways Take aways: Where are we heading? Appendix: EasyLearn s statements and reconciliation table You may customize this work, as long as you credit G. Peter & Carolyn R. Wilson and respect the Creative Commons Attribution-Noncommercial-Share Alike United States license NavAcc LLC. 1

2 2 NAVIGATING ACCOUNTING Agenda Events in EasyLearn Company example BSE 1 matrix with operating, investing, and financing classifications SCF 2 effects: Step 1. Entry by entry: Issue stock Sale on account Receivable collection Advertise on account Payable payment Step 2. Grouping related entries: Receivables Payables Adjustment signs Take aways 1 Balance-Sheet-Equation 2 Statement of Cash Flow

3 VIDEO SLIDES 3 BSE matrix

4 4 NAVIGATING ACCOUNTING SCF effects: entry by entry: E1- issue stock for cash

5 VIDEO SLIDES 5 SCF effects: entry by entry: E2 - sale on account

6 6 NAVIGATING ACCOUNTING SCF effects: entry by entry: E2 - sale on account

7 VIDEO SLIDES 7 SCF effects: entry by entry: E3 - receivable collection

8 8 NAVIGATING ACCOUNTING SCF effects: entry by entry: E3 - receivable collection

9 VIDEO SLIDES 9 SCF effects: entry by entry: E4 - advertise on account

10 10 NAVIGATING ACCOUNTING SCF effects: entry by entry: E4 - advertise on account

11 VIDEO SLIDES 11 SCF effects: entry by entry: E5 - payables payment

12 12 NAVIGATING ACCOUNTING SCF effects: grouping: receivables

13 VIDEO SLIDES 13 SCF effects: grouping: receivables

14 14 NAVIGATING ACCOUNTING SCF effects: grouping: receivables

15 VIDEO SLIDES 15 SCF effects: grouping: receivables

16 16 NAVIGATING ACCOUNTING SCF effects: grouping: receivables

17 VIDEO SLIDES 17 SCF effects: grouping: payables

18 18 NAVIGATING ACCOUNTING SCF effects: grouping: payables

19 VIDEO SLIDES 19 SCF effects: grouping: payables

20 20 NAVIGATING ACCOUNTING SCF effects: grouping: payables

21 VIDEO SLIDES 21 Adjustment signs

22 22 NAVIGATING ACCOUNTING Take aways

23 VIDEO SLIDES 23 Take aways

24 24 NAVIGATING ACCOUNTING Take aways

25 VIDEO SLIDES 25 Take aways: Where are we heading?

26 26 NAVIGATING ACCOUNTING Appendix: EasyLearn s statements and reconciliation table EASYLEARN COMPANY BALANCE SHEETS Assets 12/31/09 12/1/09 Cash $6 $0 Accounts receivable Total assets $136 $0 EASYLEARN COMPANY INCOME STATEMENT December 1 31, 2009 Revenues $150 Advertising expense (60) Net Income $90 Liabilities & owners' equity Liabilities Accounts payable 45 0 Total liabilities 45 0 Stockholders' equity Common stock 1 0 Retained earnings 90 0 Total stockholders' equity 91 0 Total liabilities & owners' equity $136 $0 EASYLEARN COMPANY DIRECT CASH FLOW STATEMENT December 1-31, 2009 Operating Activities Sales collections $20 Advertising payment (15) Net cash from operations 5 Financing Activities Sale of common stock 1 Net cash from financing 1 Change in cash 6 Beginning Cash balance 0 Ending cash balance $6 EASYLEARN COMPANY INDIRECT CASH FLOW STATEMENT December 1-31, 2009 Operating Activities Net Income $90 Receivables ($130) Accounts payable $45 Net cash from operations $5 Financing Activities Sale of common stock $1 Net cash from financing $1 Change in cash $6 Beginning Cash balance $0 Ending cash balance $6 EASYLEARN COMPANY SCF RECONCILIATION December 1-31, 2009 Reported Behind Reported Numbers Operating Activities E2 E3 E4 E5 Combined Net Income $90 $150 $0 ($60) $0 $90 Receivables ($130) ($150) $20 ($130) Accounts payable $45 $60 ($15) $45 Net cash from operations $5 $0 $20 $0 ($15) $5