Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

13. Statement of Cash Flows

Introduction to the Statement of Cash Flows

Financial Accounting

13. Statement of Cash Flows

Introduction to the Statement of Cash Flows

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Cash flow to stockholders equals:

Dividends paid plus interest paid

Net income plus depreciation

Operating cash flow minus capital expenditures

Dividends paid minus net new equity raised

Previous problemNext problem

Verified step by step guidance

Understand the concept of cash flow to stockholders: It represents the cash that a company returns to its equity investors, typically through dividends and other equity-related transactions.

Identify the components of the formula: Cash flow to stockholders is calculated as dividends paid minus net new equity raised.

Break down the formula: Dividends paid are the cash payments made to shareholders, while net new equity raised refers to the additional funds obtained by issuing new shares of stock.

Analyze the impact of net new equity raised: If a company raises new equity, it increases the total equity base, which reduces the cash flow to stockholders since the company retains more funds for operations or investments.

Apply the formula: To calculate cash flow to stockholders, subtract the net new equity raised from the dividends paid. Ensure you have accurate data for both components to perform the calculation.