Accounting Business Reporting For Decision Making – Jacequeline Birt

Refer back to the 2015 JB Hi-Fi Ltd statement of cash flows in figure 7.2. Observe how the entity has classified its cash flows and how it has presented the total net cash flows for the period, as well as the opening and closing cash balances. Overall, the JB Hi-Fi Ltd statement of cash flows shows that the net cash flows from operating activities of $179 896 000 covered the investing activities of $44 370 000 and the financing activities of $129 640 000.

The remaining $5 886 000 increased cash. Note that cash flows from financing activities would be positive at times, to help pay for investment activity. In summary, the statement of cash flows contains: •• net cash flows from operating activities •• net cash flows from investing activities •• net cash flows from financing activities •• total net cash flow (increase or decrease in cash held for the period) •• the beginning cash balance •• the ending cash balance •• comparative figures from the previous year.

The ending cash balance should equate with the cash amount appearing in the balance sheet. The JB Hi-Fi Ltd balance sheet reports an asset of cash and cash equivalents of $49 131 000, which reconciles with the ending cash balance in the statement of cash flows. To help your understanding of the purpose, use and interpretation of the statement of cash flows, it is worthwhile appreciating how a statement of cash flows is prepared.

A comprehensive example illus- trating this process is presented next. 7.3 Preparing the statement of cash flows LEARNING OBJECTIVE 7.3 Produce a statement of cash flows using the direct method and a reconciliation using the indirect method. The statement of cash flows can be prepared by analysing the cash receipts and payments records (as was done in the Teresa’s Carpets and Rugs example presented earlier) or by evaluating the statement of profit or loss and balance sheet. For the purposes of this chapter the latter method will be utilised.

Sixth edition published 2017 by John Wiley & Sons Australia, Ltd 42 McDougall Street, Milton Qld 4064 Typeset in 10/12pt Times LT Std First edition published 2005 Second edition published 2008 Third edition published 2010 Fourth edition published 2012 Fifth edition published 2014 © John Wiley & Sons, Australia, Ltd 2017 © Jacqueline Birt, Keryn Chalmers, Suzanne Byrne, Albie Brooks, Judy Oliver 2012 © Jacqueline Birt, Keryn Chalmers, Diana Beal, Albie Brooks, Suzanne Byrne, Judy Oliver 2005, 2008, 2010 The moral rights of the authors have been asserted.

National Library of Australia Cataloguing-in-Publication entry Creator: Birt, Jacqueline, author. Title: Accounting: business reporting for decision making / Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver. Edition: Sixth edition. ISBN: 9780730329886 (ebook) Subjects: Accounting. Accounting — Decision making. Accounting — Textbooks. Other Creators/ Contributors: Chalmers, Keryn, author. Maloney, Suzanne, author. Brooks, Albie, author.

Oliver, Judy, author. Dewey Number: 657 Reproduction and Communication for educational purposes The Australian Copyright Act 1968 (the Act) allows a maximum of 10% of the pages of this work or — where this work is divided into chapters — one chapter, whichever is the greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the educational institution (or the body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL). Reproduction and Communication for other purposes Except as permitted under the Act (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission.

All inquiries should be made to the publisher. The authors and publisher would like to thank the copyright holders, organisations and individuals for their permission to reproduce copyright material in this book. Every effort has been made to trace the ownership of copyright material. Information that will enable the publisher to rectify any error or omission in subsequent editions will be welcome.

In such cases, please contact the Permissions Section of John Wiley & Sons Australia, Ltd. Cover: © zabavina / Shutterstock.com.

This is a short excerpt from the opening of “” by Unknown, quoted for review and introduction purposes. All rights belong to the copyright holders.

Book Information

• Unique ID: b2c2d99095ddedef
• File Extension: .pdf
• File Size: 18,099,198 bytes (17.261 MB)
• Title: –
• Author: Unknown
• ISBN: 9780730329886
• Pages: 663
• Language: English (en)

Reading & Word Statistics

• Estimated Reading Time: 1495.5 minutes
• Total Words: 299,100
• Total Characters: 1,877,798
• Average Words per Page: 451.13
• Average Characters per Page: 2832.27

Most Frequent Words

cash (2068), business (1762), profit (1480), cost (1395), financial (1358), accounting (1332), entity (1249), costs (1123), assets (1109), per (977), reporting (919), statement (911), sales (866), balance (855), ltd (714), equity (707), liabilities (649), loss (645), decision (640), total (624), period (621), income (610), value (608), current (603), information (592), sheet (590), year (572), chapter (557), company (546), performance (543), entities (540), making (536), example (530), statements (516), accounts (509), inventory (504), flows (504), capital (499), expenses (487), required (477), ratio (471), hi-fi (470), entity’s (468), cent (454), activities (447), investment (445), net (428), analysis (426), operating (422), asset (419), tax (416), revenue (379), increase (377), use (375), paid (370), new (365), expense (364), also (362), following (354), number (349), budget (342), services (337), used (336), management (325), interest (318), between (315), time (308), price (306), equipment (303), one (302), units (302), report (300), figure (289), credit (279), product (279), debt (278), companies (276), finance (276), market (270), indirect (270), margin (268), ratios (267), depreciation (265), include (262), share (255), process (251), years (251), transactions (249), shares (249), com (248), australian (247), earnings (246), two (246), return (242), need (241), standards (240), items (240), using (239), non-current (236), changes (236).

PDF Download