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why do we calculate current assets but minus the cash in statment of cash flows? (highlighted in red) The statement of cash flows (Figure 2.6)
why do we calculate current assets but minus the cash in statment of cash flows? (highlighted in red)
The statement of cash flows (Figure 2.6) or the sources and uses of cash illuminates the impect of three areas for the year: (1) operating activities, (2) cupital pending or investing activities, and (3) financing activities. The statement of cash floms also enalses us to answer the question, Where did Hattista Products' sis million decrease in cash come from? On the statement of cash flows, sources signify cash inflows (positive antusunts), and uses-in parentheses-signify cach outfoms (negative amounts). The coarces minus the user equal the change in the cach account for the year. The first section in the satement of cach flows dieplays the operating activities. It contains the 37.287million that we calculated for the ogerating cath flow. It alwo contains the change in current assets and change in current liahilition. We had combined the current asets and current liabilities into tat working capital for the cush flow identity, but now we separate the current assets and current liabilitich. Using the balunce sheet information from 2013 and 2014. we have the following changes for current asset Step by Step Solution
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