会计英语第九章现金流量表第一组

1、LOGOLOGO 1 Chapter 9 Statement of Cash Flows Speaker： 史梦柯 Ppt Producer: 周 扬 Data Collectors: 杜逸伦 潘加萍 王海英 金 艺 章 岚 LOGOLOGO 2 Chapter 9 目录页 CONTENTS PAGE * 9.1Cash and Cash Equivalents 9.2 Classification of Cash Receipts and Cash Payments 9.3 Preeparing Cash Flow Statement Direct Method LOGOLOGO 3 Cha

2、pter 9 Statement of Cash Flows A statement of cash flows reports the cash receipts and cash payments of an entity during period.It explains the causes for the changes in cash by providing information about operating,financing and investing activities. Introduction LOGOLOGO 4 Chapter 9 过渡页 TRANSITION

3、 PAGE * 9.1 Cash and Cash Equivalents LOGOLOGO 5 Chapter 9 Statement of Cash Flows 9.1 Whats Cash and Cash Equivalents ? Cash equivalents are highly liquid short-term investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

4、 Cash is cash on hand and deposits that are readily available for payment. LOGOLOGO 6 Chapter 9 Statement of Cash Flows Cash flows are inflows and outfolws of cash and cash equivalents of an enterprise. LOGOLOGO 7 Chapter 9 Statement of Cash Flows To qualify as cash equivalents,an investment must sa

5、tisfy two criteria: 1.The investment must be readily convertible to a known amount of cash. 2.The investment must be sufficiently close to its maturity date so that its market value is relatively insensitive to interest rate changes. LOGOLOGO 8 Chapter 9 过渡页 TRANSITION PAGE * 9.2 Classification of C

6、ash Receipts and Cash Payments LOGOLOGO 9 Chapter 9 Statement of Cash Flows 1.Cash flows from operating activities The principal cash inflows from operating activities include: (a).Cash receipts from the sale of goods and the rendering of services (b).Receipts of tax refunds (c).Receipts relating to

7、 other operating activities LOGOLOGO 10 Chapter 9 Statement of Cash Flows 1.Cash flows from operating activities The principal cash outflows from operating activities include: (a).Cash payments for goods acquired and services received (b).Cash payments to and on behalf of employees (c).Payments of a

8、ll types of taxes (d).Cash payments relating to other operating activities LOGOLOGO 11 Chapter 9 Statement of Cash Flows In China, interest and dividend receipts are included in investing activities, and interest payments are included in financing activities. In US, interest and dividend receipts an

9、d interest payments are included in operating activities. LOGOLOGO 12 Chapter 9 Statement of Cash Flows 2.Cash flows from investing activities The principal cash inflows from investing activities include: (a).Cash receipts from return of investments (b).Net cash receipts from the sale of fixed asset

10、s, intangible assets and other long-term assets (c).Cash receipts relating to other invests activities . LOGOLOGO 13 Chapter 9 Statement of Cash Flows 2.Cash flows from investing activities The principal cash outflows from investing activities include: (a).Cash payments to acquire fixed assets, inta

11、ngible assets and other long-tern assets (b).Cash payments to acquire investments (c).Cash payments relating to other investing activities LOGOLOGO 14 Chapter 9 Statement of Cash Flows 3.Cash flows from financng activities The principal cash inflows from financing activities include: (a).Cash procee

12、ds from investments by others (b).Cash receipts from borrowing (c).Cash receipts relating to other financing activities LOGOLOGO 15 Chapter 9 Statement of Cash Flows 3.Cash flows from financng activities The principal cash outflows from financing activities include: (a).Cash repayments of amounts bo

13、rrowed (b).Cash payments for distribution of dividends or profits (c).Cash payments relating to other financing activities LOGOLOGO 16 Chapter 9 Statement of Cash Flows Notice: Cash payments of interest expenses are classified as financing activities in Chinese Accounting Standards. LOGOLOGO 17 Chap

14、ter 9 过渡页 TRANSITION PAGE * 9.3 Preeparing Cash Flow Statement -Direct Method LOGOLOGO 18 Chapter 9 Statement of Cash Flows Direct method is based on individual item in income statement. Major classes of revenues are shown as gross cash inflows from operations, and expenses are shown as gross cash o

15、utflows from operations. The information necessary to determine the operating cash flows is obtained by adjusting sales, cost of sales and other items in the accrual-basis is for non-cash items and items not related to operating activities. LOGOLOGO 19 Chapter 9 Statement of Cash Flows The general f

16、ormat for direct-method reporting appears in Exhibit 9-1. Cash receipts from Operating Activities Cash received from sales of goods or rendering of services Refunds of taxes Cash received relating to other operating activities Sub-total of cash inflows Cash payments from operating Activities Cash pa

17、id for goods and services Cash paid to and on behalf of employees payments of all types of taxes Cash paid relating to other operating activities Sub-total of cash outflows Net Cash Flows From Operating Activities LOGOLOGO 20 Chapter 9 Statement of Cash Flows When the direct method is used, informat

18、ion about cash flows from operating activities may be obtained either: (1)from the accounting records of the enterprise;or (2) by adjusting operating income, operating costs and other items in the income statement for: a. changes during the current period in inventories and operating receivables and

19、 payables; b. depreciation of fixed assests, amortization of intangible assets and other non- cash items; c. other items for which the cash effects are investing or financing cash flows. LOGOLOGO 21 Chapter 9 Statement of Cash Flows 1.Converting Sales to Cash Collected from Customers The relationshi

20、p between sales revenue and cash collected from customers in cases involving sales made on credit Cash Recevied +Decrease in Accounts Receivable =Net Sales from Customer -Increase in Accounts Receivable The increase or decrease in accounts receivable is determined simply by comparing the year-end ba

21、lance in the account to its balance at the begining of the year. LOGOLOGO 22 Chapter 9 Statement of Cash Flows The balance sheets and income statement for Honyun Corporatin For the Year Ended December 31,20 xx2 Sales $2 500 000 Less: Expenses Salaries $1 000 000 Cost of goods sold 725 000 Utilities

22、70 000 Rent 125 000 Insureance 20 000 Depreciation 65 000 Miscelllaneous 25 000 $2 030 000 Exhibit 9-2 LOGOLOGO 23 Chapter 9 Statement of Cash Flows Operating margin 470 000 Plus: Gain on sale of equipment 10 000 Pretax income $480 000 Less: Income tax 150 000 Net income $330 000 During the period c

23、overed by the income stsement, increase (decreases) in the following specified accounts took place: Account Increases/Decrease Accounts receivable $12 500 Supplies inventory (3 000) Prepaid expenses 1 000 Salaries payable (2 000) Other current assets 1 500 Accounts payable 7 000 Income tax payble 1

24、000 accrued liabilities 1 000 LOGOLOGO 24 Chapter 9 Statement of Cash Flows 2.Converting Cost of Goods Sold to Cash Paid for Goods This conversion is a two-step process. The first step is designed to determine the amount of inventory purchases for the period. The second step determines the amount of

25、 cash paid for these purchases. LOGOLOGO 25 Chapter 9 Statement of Cash Flows 2.Converting Cost of Goods Sold to Cash Paid for Goods Firstly, an increase in inventory is the fact that the cost of purchases made during the period is greater than the cost of goods sold. Secondly, a decrease in account

26、s payable reflects the fact that cash paid for inventory during the period exceeds the amount of purchases. The full relationship is stated below. LOGOLOGO 26 Chapter 9 Statement of Cash Flows 2.Converting Cost of Goods Sold to Cash Paid for Goods Cash paid for goods = cost of goods sold or + increa

27、se in inventory - decrease in inventory + decrease in accounts payable or - increase in accounts payable LOGOLOGO 27 Chapter 9 Statement of Cash Flows 2.Converting Cost of Goods Sold to Cash Paid for Goods Using information from the Hongyun Corporation, the cash paid for goods may be computed as fol

28、lows: Cost of goods sold $ 725 000 Less: Decrease in inventory (3 000) Increase in accounts payable (7 000) Cash paid for goods $ 715 000 LOGOLOGO 28 Chapter 9 Statement of Cash Flows 3.Converting Wages Expense to Cash Paid to and on Behalf of Employees Wage expense is an accrued liability. In order

29、 to convert an expense related to an accrued liability to the cash basis, we must consider the change in the accrued liability during the period. This relationship is stated below. LOGOLOGO 29 Chapter 9 Statement of Cash Flows 3.Converting Wages Expense to Cash Paid to and on Behalf of Employees Cas

30、h paid to and on behalf of employees = Wages Expense + Decrease in Related Accrued Liability or Increase in Related Accrued Liability LOGOLOGO 30 Chapter 9 Statement of Cash Flows 3.Converting Wages Expense to Cash Paid to and on Behalf of Employees A decrease in an accrued liability during the peri

31、od reflects the fact that cash paid exceeds the amount of the related expense. As a result, the decrease in the accrued liability is added to the related expense to calculate the amount of cash paid during the period. Alternatively, an increase in an accrued liability is subtracted from the related

32、expense to calculate the amount of cash paid. LOGOLOGO 31 Chapter 9 Statement of Cash Flows 4.Converting taxes expense to payments of all types of taxes payments of all types of taxes= Taxes Expense +Decrease in related payable Or - Increase in related payable e.g: Taxes expenses $ 150 000 Less: Inc

33、rease in related payable (1 000) Income taxes paid $ 149 000 LOGOLOGO 32 Chapter 9 Statement of Cash Flows 5.Cash Paid Relating to Other Operating Activities E Expenses represent the cost of goods and services used up during the period. xpenses represent the cost of goods and services used up during the period. But, But, E Expenses xpenses dont equal to the cash payments made during the period. dont equal to the cash payments made during the period. For For example, example, D Depreciation expense doesnepreciation expense doesn t require cash payment , but increases t require cash payment , b