Operating activities

Classification Financing activities

Investing activities

1 Components and format of the cash

flow statements

Differences between IFRS and USGAAP

Direct and In-direct methods for reporting

cash flow from operating activities

2.1 Linkages between Income Statement and

Balance Sheet

Operating activities in Direct method

Investing activities

Financing activities

2. The cash flow statement: Linkages

and preparation

2.2 Steps in preparing the cash flow statement

Reading 25
Understanding Cash Flow
Statements

Operating activities in In-direct method

Conversion of cash flow statement from In-

direct to Direct method

Evaluation of the Sources and Uses of Cash

Common-Size Analysis of the Statement of

Cash Flows

FCFF
Free Cash Flow to the Firm and Free Cash
Flow to Equity

FCFE

3. Cash flow statement analysis

Cash Flow Ratios