Understanding Financial Statements Relationships

• Income Statement
• Balance Sheet
• Cash Flow Statement
• Latest Developments in the Accounting Standards Regarding Statement of Cash Flow

Presentation of Cash Flow

• Presentation Fundamentals
• Cash and Cash Equivalents
• Operating Cash Flow
• Investing Cash Flow
• Financing Cash Flow
• Methods in Calculating Operating Cash Flow
  • Direct versus Indirect Methods
• Reporting Non Cash Transactions

General Use of Cash Flow Statement

• Liquidity and Financial Flexibility
• Restricted Cash and Cash Equivalent
• Gross Versus Net Cash Flow Reporting

Presentation Issues

• Interest and Dividends from Debt and Equity Investments
• Installment Sales and Purchases
• Interest and Taxes Paid
• Receivables and Bad Debts

Analysis of Cash Flow

• External Users of Cash Flow Information
• Ratios and Bankruptcy
• Internal Users of Cash Flow Information
• Capital Expenditure Evaluation

Cash Flow Related Ratios

• Quality of Earnings Ratios
  • Cash Flow Adequacy Ratio
  • Operating Cash Index
  • Depreciation Impact Ratio
  • Reinvestment Ratio
• Financial Management Ratios
  • External Financing Ratios
  • Cash Sources Component Percentages
    • Operating
    • Investing
    • Financing
• Mandatory Cash Flow Ratios
  • Mandatory Cash Flow Index
  • Long-Term Debt Payment Ratio
  • Percentage of Cash Sources Required for Long-Term Debt
  • Short-Term Ratio
  • Long-Term Ratio
• Discretionary Cash Flow Ratios
  • Discretionary Cash Index
  • Dividend Payout of Cash from Operations