Cash Flow Paper
...The need for a cash advance will alert management to take alternative measures for cash sources. The investing activity transactions pertain to the purchase and sale of non-current assets. This information will inform the user of how cash was handled. Examples of cash handling include land purchase, building, and equipment. The financing activity transactions relate to changes in non-current liabilities and in owners equity. The user will be able to identify how much cash was generated from the sale of stocks and the amount generated for dividends and long-term liability payments. By viewing the statement of cash flow, the user will be able to identify operating investing, and financing activities. The direct method and indirect method are two alternative approaches to presenting the operating activities of the statement of cash flows. The direct method of cash flow presentations lists each major class of cash receipts and disbursement transactions for the three activity areas: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. The indirect method of cash flow presentation explains cash flows from operating activities by explaining the chang...