From the course: Accounting Foundations: Statement of Cash Flows

The statement of cash flows

From the course: Accounting Foundations: Statement of Cash Flows

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The statement of cash flows

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- What's the difference between net income and cash flow? - Why are there two different methods to report a company's operating cashflow? - Now, one of the methods is easy to understand, the other is difficult. So why do almost all companies in the world use the one that's more difficult to understand? - And who created the amazing matrix that allows a person to create both methods at the same time? - What's the most important number in a company statement of cash flows? - Hi, I'm Jim Stice, I'm an accounting professor at Brigham Young University. This is my brother, Kay. - I'm also an accounting professor at Brigham Young University. - [Jim] In this course, we will learn how to analyze balance sheet and income statement data to create a statement of cash flow. - [Kay] We will see the decline, bankruptcy, and rebirth of General Motors through analyzing the time series of the company's annual free cash flows. - [Jim] We will look at Tesla's transformation from a cash consuming catastrophe into a cash generating marvel. - Join us as we help you develop a thorough understanding of that coolest and most sophisticated of the financial statements, the statement of cash flows.

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