QuickBooks Online 2021 that statement of cash flows. Let’s get into it with Intuit QuickBooks Online 2021. Here we are in our QuickBooks Online test drive file, which you can find by searching in your favorite browser for QuickBooks Online test drive or in Craig’s design and landscaping services, we’re going to go down to the reports down below, opening up the other report, that’s going to be a financial statement report, but not really our two favorite ones, the two favorites being the balance sheet and income statement, the other financial report being the statement of cash flows, so we’re going to be opening up the statement of cash flows, I’m going to right click on the statement of cash flows.
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Statement of Cash Flow Outline
In this presentation, we will take a look at a basic outline for a statement of cash flows. In order to do this, we first want to give an idea of how the statement of cash flows will be generated. So we can think about these components of the statement of cash flows and where they come from. Typically, we will have a worksheet such as this that we will use in order to generate the statement of cash flows. That statement of cash flows, having three major components, operating activities, investing activities, and financing activities. Our goal here is going to be to fill out these three components and typically we will use a worksheet such as this on the left. The worksheet is just basically a comparative balance sheet that we have here that we’ve reformatted from a balance sheet to just a trial balance type format, a debit and credit type format. So you can see that we have our balance sheet accounts, and we are imbalanced by having the debits the positive and the credits be negative or debits. Minus the credits equaling zero, given it’s an indication that this period, the current period that we are working on, is in balance, the prior period, same thing. So we have two points in time for to balance sheet points the prior year, or period the prior year in this case and the current year. And then we just took the difference between these two columns. And if we have something that’s in balance, here, the debits minus the credits equals zero, something that’s in balance here, the debits minus the credits equals zero. And then we take the difference of each line item in these columns. And some of those differences, it too must add up to zero. So in essence, what we’re going to do in order to create the statement of cash flows is find a home for all these differences. And that’ll give us a cash flow, a concept of the cash flow statement. We’ll get into more detail on how to do that when we create the cash flow statement. But as we look at the outline, keep that in mind. So here’s going to be the basic outline for the state. cash flows, we’re going to have the operating activities. That’s going to include a list of inflows and outflows from the operating activities. And then we’re going to have the net cash provided by the operating activities. Now, this list of inflows and outflows for the operating activity will be the most extensive list because the operating activities are in relation to you can think of it as similar to the income statement.
Classification of Cash Flows
In this presentation, we will take a look at classifications of cash flows on the statement of cash flows, there’s going to be three major categories on the statement of cash flows. Those will be operating activities, investing activities, and financing activities. So our goal here, when we go through the statement of cash flow as we work through the statement of cash flows is going to be in part to decide which area these cash flows should go, should they go into operating, investing or financing. It’s going to be common questions and common problems and really just information we need to know when reading the statement of cash flows. So we’ll start off with the operating activities. We’re just going to look at the major components of the cash flows within the operating activities. So we’ll talk about inflows and outflows. Remember what we’re talking about here is cash. So when we’re talking about the statement of cash flows, we’re talking about cash flows, the cash that goes into the company, they cashed out goes out to the company. We’re going to talk about inflows and outflows here related to operating activities. Before we go into the list of inflows and outflows related to operating activities, we want to know first, that operating activities is going to be similar to us thinking about the income statement on a cash basis. So when we think about the operating activities were really thinking or one way to think about it would be that if we were to have the income statement on a cash basis, then what would the inflows and outflows be that’ll basically be what are in the operating activities when we get to the thought process in terms of how to determine operating investing and financing activities.