Cool to be able to see how much the cash outflow and how much the cash inflow was from purchases and sales of securities in other businesses. Very informative.
$PLx Protalix Biotherapeutics Inc NYSEAMERICAN: PLX Come target their Shadow Banks and underwriters instead of chasing your tail That should be enough to give even The savvy it's a massive headache They have 10 times to float out with fake synthetic shares and the whole market's index now so you can actually Target this game artist instead of paying copies coffers to keep chasing his tail
Sir the video is great.It cleared many of my confusions.But i want to know the treatment of a Gain.In case of loss its an accounting loss but in case of gain its an actual gain like if we sell something for $1100 which we bought for $1000.In this case we are actually receiving $1100 in cash.How will this gain be treated in Operating and Investing section?
do we need to add back gains on the sale of an investment in CFI Activities ? like if we purchase an asset for 30K, we sold it for 35K and generate a gain of 5K so how is this going to fit into proceeds from sale of equipment and purchase of long term investment ? and do we need to add back gain to "proceeds from sale of equipment" ?
The big problem I have with statement of cash flows is the confusion between investing and financing related to loans and notes. My CPA review or any online resource has loan issuance, collection in both the investing and financing sections and it seriously sucks. I do know interest paid and received with dividends received is operating and dividends paid is financing. But the blend for loans and notes potentially being both investing and financing is the main reason this statement is the most confusing. Could you explain this to me?
Changes in interest payable go in the operating section because the operating section is taking accrual-basis Net Income and transforming it to cash-basis Net Income. As for the financing section, think of it as transactions involving owners and creditors that aren't otherwise accounted for in the operating section
Hi If the company purchased an investment at FVPL and designated as cash equivalents, shall this investment included in the operating activities using the direct method?
The Statement of Cash Flows is showing WHY cash changed during the year. Thus, if you purchased a building 5 years ago, this would not be on the statement of cash flows. If an asset was purchased or sold during the year, the cash received or paid would go in the investing section. In the operating section, you'd record the depreciation expense. Accumulated depreciation is essentially an aggregate of all the depreciation expenses over the years. Since we only was cash differences for the year, we don't use accumulated depreciation. I'm not quite sure what a/cs means. I have 9 detailed videos on the Statement of Cash Flows plus exercises if you need more clarity www.edspira.com/lessons/statement-cash-flows Thanks for watching!
I have 2 videos that address this issue: www.edspira.com/topic/purpose-of-the-statement-of-cash-flows www.edspira.com/topic/statement-cash-flows-indirect-method
Say you sold equipment for 30,000. The book value is 36,000. The original cost was 44000. The equipment is sold at a loss. What is the amount youd put under operating activities.
On the income statement, the loss on the sale of equipment would have reduced Net Income. To calculate Net Income on a cash basis, you would add back the $700 loss in the operating section because it is a non-cash transaction that affected Net Income. Remember, we are trying to back-out all non-cash transactions so that we can look at the health of the company on a cash basis.
Sir! I can't thank you enough for this. You are simply the best!
This dude actually saving my life rn, thank you!
Cool to be able to see how much the cash outflow and how much the cash inflow was from purchases and sales of securities in other businesses. Very informative.
$PLx
Protalix Biotherapeutics Inc
NYSEAMERICAN: PLX
Come target their Shadow Banks and underwriters instead of chasing your tail
That should be enough to give even The savvy it's a massive headache
They have 10 times to float out with fake synthetic shares and the whole market's index now so you can actually Target this game artist instead of paying copies coffers to keep chasing his tail
Margin went up with interest rates
Thank you! I didn't understand in class until I watched your video.
Can't thank you enough for these lessons. Thank you. Thank you. Thank you.
thx ，but not enough for this topic， how about accumlated or carrying cost
Sir the video is great.It cleared many of my confusions.But i want to know the treatment of a Gain.In case of loss its an accounting loss but in case of gain its an actual gain like if we sell something for $1100 which we bought for $1000.In this case we are actually receiving $1100 in cash.How will this gain be treated in Operating and Investing section?
Gain is deducted from cash flow from operation.
do we need to add back gains on the sale of an investment in CFI Activities ? like if we purchase an asset for 30K, we sold it for 35K and generate a gain of 5K so how is this going to fit into proceeds from sale of equipment and purchase of long term investment ? and do we need to add back gain to "proceeds from sale of equipment" ?
dude, You're amazing :) Thanks for saving my final
Can you do an example of purchasing PP&E & financing the majority of it?
The big problem I have with statement of cash flows is the confusion between investing and financing related to loans and notes. My CPA review or any online resource has loan issuance, collection in both the investing and financing sections and it seriously sucks. I do know interest paid and received with dividends received is operating and dividends paid is financing. But the blend for loans and notes potentially being both investing and financing is the main reason this statement is the most confusing. Could you explain this to me?
Changes in interest payable go in the operating section because the operating section is taking accrual-basis Net Income and transforming it to cash-basis Net Income. As for the financing section, think of it as transactions involving owners and creditors that aren't otherwise accounted for in the operating section
Excellent tutorial. Keep up to good work
Hi
If the company purchased an investment at FVPL and designated as cash equivalents, shall this investment included in the operating activities using the direct method?
what if we purchase supplies on credit? does it still have to be recorded in cfs?
wht about the fixed assets ,accumulated depreciation and investment a/cs
The Statement of Cash Flows is showing WHY cash changed during the year. Thus, if you purchased a building 5 years ago, this would not be on the statement of cash flows. If an asset was purchased or sold during the year, the cash received or paid would go in the investing section. In the operating section, you'd record the depreciation expense. Accumulated depreciation is essentially an aggregate of all the depreciation expenses over the years. Since we only was cash differences for the year, we don't use accumulated depreciation. I'm not quite sure what a/cs means. I have 9 detailed videos on the Statement of Cash Flows plus exercises if you need more clarity www.edspira.com/lessons/statement-cash-flows Thanks for watching!
Edspira really appreciate for your clear explanation.
What if there’s a gain on selling the equipment
Thnx so much for ur reply .....it was helpful for me
No problem!
Hi there, what is the correlation between the 3 statement of CF? The CFO, CFI and CFF? Is the any type of correlation between them?
I have 2 videos that address this issue:
www.edspira.com/topic/purpose-of-the-statement-of-cash-flows
www.edspira.com/topic/statement-cash-flows-indirect-method
thank you so much sir
in what account do we put in the 700$ loss on the operating activity ?
Daniella,
Here's a video on how to dispose of a fixed asset: www.edspira.com/topic/fixed-asset-disposal/
Best of luck in your studies!
Say you sold equipment for 30,000. The book value is 36,000. The original cost was 44000. The equipment is sold at a loss. What is the amount youd put under operating activities.
I can confused why would you add back that $700 loss?
On the income statement, the loss on the sale of equipment would have reduced Net Income. To calculate Net Income on a cash basis, you would add back the $700 loss in the operating section because it is a non-cash transaction that affected Net Income. Remember, we are trying to back-out all non-cash transactions so that we can look at the health of the company on a cash basis.
This guy sounds like John C. Reilly
The black screen layout is no good for students with ADD, ill tell ya that
quality of the video portion of this video is bad
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