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Mcdonalds Five Force Model

Statement of Cash Flow

Section 1 Basic Elements of the Statement of Cash Flow

1. Definition
A summary of the cash receipts and payment for a specific period of time, such as a month or a year.

2. Purpose
To provide information on why the cash position of the company changed during the period.

3. Categories of Information

+ =

4 Description of the Activities

Operating Activities

Investing Activities

Financing Activities

Exercise:

Indicate whether each of the following activities would be reported on the Statement of Cash Flows as an Operating Activity, an Investing Activity, a Financing Activity, or does not appear on the Cash Flow Statement.

|(a) |Cash paid for building |
|(b) |Cash paid to suppliers |
|(c) |Cash paid for owner's withdrawal |
|(d) |Cash received from customers |
|(e) |Cash received from the owner's investment |
|(f) |Cash received from the sale of a building |
|(g) |Borrowed cash from a bank |

ANS:

|(a) |Investing |
|(b) |Operating...