CFO1

1. classification

1.1. interest received

1.2. interest paid

1.3. div received

1.4. div paid

1.5. bank overdraft

1.6. tax paid

2. CLASSIFICATION

2.1. CFO: Cash collect from sales, cash inputs into the manufacturing or retail process, cash operating expense, cash IE and income, cash dividend revenue, cash tax payments

2.2. CFI: SALE/ PURCHASE ASSET ( NOT INCLUDE GAIN/LOSS), INVESTMENT/SALES IN marketable securities

2.3. CFF: cash div paid, long term borrowings, stock( equity) sales/ repurchase, note: the issuance of CM stock would not affect CFF

3. Ưu nhược điểm của direct method: 1. provide infor on the specific sources . 2. help assess a company 's financing needs and capacity to repay existing obligations

4. ưu nhược điểm của indirect method: 1. shows the differences between NI and CFO. 2. Easier and less costly. 3. Mirror a forecasting approach

5. DIRECT METHOD

5.1. CFO

5.1.1. Ending AR= Beg AR + Revenue - cash collected from customers

5.1.2. Ending AP= Beg AP + Purchases - Cash paid to suppliers

5.1.3. Ending Inv= Beg Inv + Purchases - COGS

5.1.4. Ending WP= Beg WP + Salary expense - cash paid to employees

5.1.5. Ending IP= Beg IP + IE - cash paid for interest

5.1.6. Ending TP= Beg TP + Income tax expense - cash paid for income tax

5.2. CFI

5.2.1. Ending FA= Beg FA + FA purchased - FA sold ( historical cost)

5.2.2. Ending AD= Beg AD + depreciation expense - AD on FA sold

5.2.3. Cash received from sale of equipment = NBV + gain/loss on sale

5.3. CFF

5.3.1. Ending RE= Beg RE + NI - Dividends

6. INDIRECT METHOD

6.1. CFO= NI - NONCASH ITEM - delta DTA + delta DTL + AD - gain + loss + delta WC