STATEMENT OF CASH FLOWS ©
Written by Professor Gregory M. Burbage, MBA, CPA, CMA, CFM

scf.doc

Please observe all copyright laws

OPERATING

INVESTING

FINANCING

Cash Receipts From:
- Sale of goods and services
- Interest and dividend income

Cash Receipts From:
- Sale of property & equipment
- Sale of investment securities
- Collections on loans receivable

Cash Receipts From:
- Short-term borrowing
- Long-term borrowing
- Issuance (sale) of stock

Cash Payments For:
- Inventory
- Wages
- Interest
- Taxes
- All other operating expenses

Cash Payments For:
- Purchase of property & equipment - Purchase of investments
- Making of loans receivable

Cash Payments For:
- Repayment of amounts borrowed - Dividends to stockholders
- Purchase of treasury stock

Operating Accounts:
Investing Accounts:
- All income statement accounts - Long-lived assets
- Current assets*
- Current liabilities**
- Retained earnings change from net income or loss
-----------------------

Financing Accounts:
- Long-term liabilities
- Stockholders’ equity
- Retained earnings decrease from dividends paid to owners

* except for money loans made and subsequently collected.
** except for money borrowed and subsequently repaid .

The following would be shown at the bottom of the statement or mentioned in the footnotes to the financial statements. These are changes to assets, liabilities and/or equity accounts (other than current) that occur without an offsetting change to cash. I.e., these affect two different accounts on the balance sheet and do not affect cash.
Non-Cash Investing and Financing Activities:
- Acquiring long-lived assets by issuing notes/bonds payable, assuming debt, issuing of stock or trading of other assets.
- Conversion of bonds payable into common or preferred stock.
- Conversion of common stock to