Flow Statement $ millions] rating Cash Flow Earnings :Depreciation & Amortization s: Changes in Working Capital h from Operations 2017 2018 26,713 28,227 16,080 16,544. 903 827 42,354 43,480 esting Cash Flow estments in Property &. Eguinment 15. 000 15000
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![fx
A
C
Cash Flow Statement
[USD $ millions]
2017
2018
Operating Cash Flow
Net Earnings
Plus: Depreciation & Amortization
Less: Changes in Working Capital
Cash from Operations
26,713
28,227
16,544.
16,080
903
827
42,354
43,480
9 Investing Cash Flow
0 Investments in Property & Equipment
11 Cash from Investing
15,000
15,000
15,000
15,000
12
13 Financing Cash Flow
14 Issuance (repayment) of debt
15 Issuance (repayment) of equity
16 Cash from Financing
17
18 Net Increase (decrease) in Cash
19 Opening Cash Balance
20 Closing Cash Balance
28,480
211,069
27,354
183,715
211,069
239,550
21
22
23 Weighted Average Shares Outstanding
2,000
2,500
2,000
2,500
24 Basic
25 Fully Diluted
26
27
28](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63824313-ece7-46b6-954d-24d9c422a684%2F1925d48b-be1f-452b-8521-5ac7e7d3fbfb%2F2uvyvvh_processed.jpeg&w=3840&q=75)
Step by step
Solved in 2 steps with 1 images
