Cash flows - part 2
Taught by James Griffiths · AI tutor support included
Students will master the indirect method for calculating cash flow from operations by adjusting profit for non-cash items and working capital changes. This lesson demonstrates the practical mechanics of converting accrual-based profit into actual cash movements, forming the foundation of statement of cash flow preparation.
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In this lesson
- 0:00 Introduction to Cash Flow Statements
- 2:09 Indirect Method Overview
- 4:24 Practical Example Begins
- 8:51 Conclusion and Next Steps
About this lesson
Dive deep into the intricacies of calculating cash from operations using the indirect method in this comprehensive guide. This video unveils the steps to adjust a company's profit figure by accounting for non-cash items and working capital movements, providing a clear pathway from profit to cash flow. With practical examples and a step-by-step breakdown, viewers will grasp how to accurately prepare the beginning of a statement of cash flow. Perfect for finance professionals and students, this tutorial offers valuable insights into mastering cash flow statements.
Duration: 9m
- Indirect method for operating cash flow
- Non-cash item adjustments
- Working capital movements
- Profit to cash conversion
- Statement of cash flow preparation
- Accrual to cash reconciliation
Transcript
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