In the realm of corporate finance, understanding and accurately reporting cash flows is crucial, yet often misunderstood or underemphasized. This course directly addresses this challenge by focusing on ASC 230, the Statement of Cash Flows, which is pivotal in showcasing a company's financial health to management, investors, and creditors. It agitates the common difficulties faced in categorizing and presenting different types of cash variables - operating, investing, and financing - and their impact on a company's cash position. The solution offered is a detailed exploration of cash flow reporting, including the nuances of the direct and indirect methods, and how changes in asset and debt accounts are reflected in the cash flows. Through practical examples, the course provides clarity on the presentation and disclosure requirements of ASC 230, equipping participants with the skills to prepare and analyze this essential financial statement accurately.
Learning Objectives
After completing this course, you will be able to:
Recognize the use of and the objectives for a statement of cash flows;
Identify how different cash variables (e.g., operating, investing, financing) affect the cash flows;
Identify differences between the direct method the indirect method;
Recognize how changes in asset and debt accounts affect the cash flows; and
Identify the presentation and disclosure requirements.
Major Topics
Fundamentals of Reporting and Analysis
Gross vs. Net Cash Flows
Preparation of Cash Flow Statement
