Cash Flow Statement Creation Tips

In this video, I provide cash flow statement creation tips. Cash flow statements can be confusing because you are moving from full accrual statements in the balance sheet and the income statement to cash only transactions. I provide helpful tips to get you through this process, especially if your company uses the indirect method.

00:00 Introduction
00:28 Cash flow statement tells a story
01:20 Three cash flow buckets
02:09 Direct method cash flow statement
02:30 Indirect method cash flow statement
03:08 Focus on investing and financing first
04:15 Investing activities
05:07 Financing activities
05:52 Backing into cash flows from operations
06:30 Indirect method
07:45 Add noncash amounts to net income
08:20 Isolate individual transactions
09:45 Losses and gains on sale of assets
11:05 Changes in accounts
12:15 Resolving problems
12:45 Using Excel spreadsheets
13:30 Customer cash payments example
14:45 Summary

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