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CashFlow Statement A..
CashFlow Statement A..
CashFlow Statement A..
CashFlow Statement A..
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CashFlow Statement A..


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  1. Summary of Cash Flow Coverage Nikolia Bazley, 8th Edition, Copyright 2000 Coverage found in chapters 4, 5 & 21 Chapter 4, The Income Statement and Statement of Cash Flows Pages 134 – 138 Summary of coverage includes very brief discussion of the uses of the statement, Explains the three major sections. Includes one complete exhibit using the indirect method. Includes a short explanation of the direct method. Includes four exercises. Includes four problems. Chapter 5, Additional Aspects of Financial Reporting and Financial Analysis. Pages 197 Includes calculation and usefulness of the following ratios: Cash flows from operations to sales Cash flow from operations to net income Cash flow from operations per share Cash flow from operations to maturing debt Also mentions but does not discuss CFO divided by cash operating expenses, total assets, or total liabilities, and CFO divided by the cash flow for investing activities that are needed to maintain the operating capacity of the company. There were no exercise or problems that dealt with cash flow. Chapter 21, Statement of cash flows Pages 996 – 1034 Emphasis on indirect method, only two pages in chapter on direct method. Direct method is further covered in appendix. Approximately 15 exercises assume indirect method, four exercises from appendix assume direct method. Approximately 13 problems assume indirect method, four problems from appendix assume direct method.
  2. Kieso, Weygandt & Warfield 10th Edition, 2002 Coverage found in chapters 5, 24 Chapter 5, The Balance Sheet and Statement of Cash Flows Pages 206 – 212 Includes summary on purpose of cash flow statement, the content and format. Includes one simple example of how a cash flow statement can be prepared from a simple income statement and balance sheet. Indirect method is assumed. Two pages on the usefulness of the cash flow statement. No mention of direct method. Two ratios discussed: Current cash debt coverage ratio Cash debt coverage ratio Seven exercises on cash flows and two problems all using indirect method. Chapter 24, Statement of Cash Flows Page 1310 – 1346 Discusses the purpose, content and format of the cash flow statement. First example uses indirect method. The discussion follows of both direct and indirect methods using simple examples. Indirect method and then direct method are discussed in more detail. Advantages and disadvantages of both methods are discussed. Comprehensive worksheet illustration is discussed and statement is prepared using indirect method. Many special situation discussed. Chapter has 13 brief exercises, two specify direct method and four specify indirect method. Chapter has 24 exercises, seven specify direct method and fourteen specify indirect method. Chapter has 12 problems , three specify direct method and seven specify indirect method and two require preparation and comparison of both.
  3. Spiceland, Sepe & Tomassini, Updated 2nd Edition, Copyright 2001 Coverage found in chapters 3, 22 Chapter 3, The Income Statement & Statement of Cash Flows Pages 132 – 135 Very brief discussion on the usefulness of the statement and classification of cash flows. Very brief discussion on direct and indirect methods. Four exercise and one problem on cash flow. Chapter 22, The Statement of Cash Flows Revisted Pages 1024 – 1060 All discussion from pages 1024 – 1055 assume the direct method. The indirect is presented as an alternative and discussed very briefly. Five “performance ratios” which includes cash are listed as well as six “sufficiency ratios” are listed. No discussion of the usefulness of these ratios is given. Appendix A is an example of the indirect method using a spreadsheet and appendix B is an example of the T account method. Out of 25 exercises six are indirect and two are both direct and indirect. Out of 20 problems four ask for the indirect method and four problems ask for the direct method but also include the separate schedule using the indirect method for operating activities.