Professional Documents
Culture Documents
Cash Flow
Analysis
Anwar Harsono
McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights rese
Statement of Cash Flows
Investing Financing
Activities Activities
Are means of acquiring Are means of
and disposing of 2 Reportin 3 contributing,
noncash assets. g by withdrawing, and
servicing funds to
Activitie
1 support business
s activities.
Operating Activities
are the earning-related activities
of a company
Beyond revenue and expense
activities represented in an
income statement, they include
the net inflows and outflows of
cash resulting from related
operating activities.
Statement of Cash Flows
Positive free cash flow reflects the amount available for business
activities after allowances for financing and investing
requirements to maintain productive capacity at current levels.
Measure of the
Operating cash flow
percentage of investment Dividends
in assets representing Gross plant + Investment +
operating cash retained Other assets
and reinvested in the + Working capital
company for both
replacing assets and
growth in operations