Cash Flow Statement Analysis

Prof. Tony Bell has taught cash flow analysis in different parts. Watch all these videos one by one to learn it. Hope it will be useful for you to learn cash flow statement analysis.


Cash Flow Statement Analysis Part 1 - Video Tutorial

Transcript

0:01in this series of videos we're going to talk about
0:04cash flow statements um so
0:08just to begin I I think the name cash flow statement actually you know really
0:11illustrative of what is it talks about
0:14arm how much cash a company had at the beginning of the year
0:18how they spend their cash how they receive their cash their cash inflows
0:22the cash outflows
0:23and it ends with how much cash the company at the end of the year so
0:27I think that's kinda a logical description for the cash flow statement
0:31and when I was first starting to teach this I this to NASCAR a pretty good
0:35question
0:36he said well wait a minute we already have a cash flow statement because we
0:40learned how to make a cash
0:42GL account or kashti account where we have our cash is beginning balance
0:47will have some credits which of course represent
0:50cash outflows
0:53world sorry about my writing we have some
0:57davits which represent cash inflows and we have an ending balance
1:03of course in a debit I and listen said you know i
1:08this is like castles then I can see where the company's I getting their cash
1:12from I can see where they are spending their cash
1:14I know what's going on in cash by looking at the T account and its true
1:19actually if you look at the company's cash account you will understand what's
1:22going on with their cash
1:23but in an introductory accounting class we have a very simple companies with
1:28very few transactions
1:30if I look at a real company they would have styles and thousands and thousands
1:34of cash transactions in the air and the cash the account might be pages long
1:39and 2008 financial same uses it said it I want thousands of pages have cash
1:43information after
1:44synthesize it for myself hi I would like you to summarize the cash inflows in
1:49cash outflows
1:50in a logical way and that's why we have ob
1:53I cash flow statement on the cash flow statement as three sections
1:58and I'm gonna discuss Cee to those three sections in our next video will do some
2:02examples of cash
2:03stay number right now let's look at those three sections in as the
2:07operating section the investing section
2:14and the finance exact and so rather than just a listing all the transactions
2:19haphazardly or according to date were gonna
2:22classify all up to the cash related items into these three categories
2:26operating investing and finance
2:30so I'll talk about the operating section first
2:33it summarizes all other transactions that
2:36the cash related transactions that contribute towards net income
2:41so cash transactions
2:45that contribute words net income and so do you think about a company that okay
2:50like
2:51a company like wal-mart what are the cash was elated transactions that
2:54contribute to Walmart genetic
2:56well the biggest one that look for in terms of cash coming in would be getting
3:00money from their customers
3:02I you know they sell stuff to their customers our customers pay them money
3:06so
3:06the biggest %uh operating cash inflow
3:10is typically cash Cole actions
3:14from your customers is also a couple big outflows in terms the day-to-day
3:23operations and again I i was thinkin is operating section is the day to day
3:26operations in the business
3:28the biggest cash outflow in this area is typically
3:32well as a couple cash payments
3:36for expenses
3:39like operating expenses I mean things like
3:42for wal-mart paying their employees salaries keep the lights on paying the
3:46bills those day-to-day operating expenses are absolutely a cash ok so
3:50another major cash outflow for
3:53a company like wal-mart is buying their merchandise
4:00so cash payments for a call at merch
4:03thats merchandise buying the stuff that they're going to put on the shelves
4:06so I there's more than just that but those are the major
4:11operating cash flows ok up cash coming in from your customers cash payments ok
4:15for expenses and cash
4:17Enzo for merchant so operating is sorta summed up by
4:21transactions and other more than short term assets and liabilities as well as
4:27%ah at transactions that make up the company's net income
4:32the next section we're going to talk about is the investing 6+
4:36and the investing section when I think investing
4:39I think long-term assets
4:43so I am Walmart day-to-day spent a lotta money buying their merchandise selling
4:50their merchandise and make a lot of money pain of their
4:52their expenses as all day to day operations a bomb on that goes in the
4:56operating sex
4:57if wal-mart decides to open up a new store
5:00in a new city the spend millions and millions of dollars but let's be clear
5:05that's on a day-to-day operations thing that's and investing activity that's a
5:10long term thing
5:12so purchases and sales
5:15%uh long-term assets usually capital assets but still investments and other
5:19long-term assets
5:20belong in the best exact so I guess if I woulda
5:24lay it out I would say purchases
5:30and Searles 0
5:34long-term assets the final section is a financing section
5:40and here I think about long-term liabilities
5:45and I also think about shareholders equity transactions
5:48in the financing section it's all about where our money's coming from in the
5:53long term
5:54are we borrowing it from the bank are we getting it from our shareholders where's
5:58our money coming from
5:59and also payments back to the bank and payments out to shareholders are tracked
6:03in this section as well
6:05soul in terms of long-term liabilities would be any borrowing
6:10from the bank it would be any issuing new shares to shareholders
6:16course repaying the bank
6:19and repurchasing shares
6:24on the Serie purchasing are kinda the flip side of that coin
6:28and also payments out to shareholders in the form mulch
6:32dividends so those are the major categories and again I is in an
6:37exhaustive list but that's kinda how transactions have to be tracked through
6:40the cash
6:41stayed the same when he would Monday I debit cash was it a
6:44you know was it an issuance of shares in that case it's gonna financing section
6:48was that I sold an asset will Mac is a Jew going investing
6:52section was it a cash collections my customers one that case it goes in the
6:56operating section
6:57so whenever we look at transactions are we look at items we want to be able to
7:01classify
7:01side operating invest in our sign it and that's going to be key
7:06as we learn to work through the cash host on
7:10the final thing I wanna touch on before we get to an example
7:14is just a couple formats for the cash flow statement
7:18we're gonna learn to different formats for
7:21the operating section other cash flow statement so there's the three sections
7:25operating investing and financing
7:27ha operating there's two ways that that
7:30a gap allows just present the operating 6
7:34investing in financing doesn't matter which method we choose but it's the same
7:38the operating section there's two ways to present there's the direct method
7:43and there's a method called the indirect method
7:46now in my mind and in my heart
7:49I prefer the direct method I think it's better I think it makes more sense
7:53om and gap agrees with me gap in IFRS a the direct method is better
7:58so unite gets the check mark from Gap
8:01unfortunately or fortunately if you look up your favorite company on the internet
8:07most companies
8:08prefer to use the indirect method
8:12and so because this I'm gonna teach both
8:15so I'm the next video we look at I'm gonna walk you through the direct
8:18methanol explain why I think it's better
8:20%uh and then in the subsequent video walking through the indirect method Knox
8:24when I think it's not as good but
8:25you still have to know how to do in understand what it is so
8:28that's going to be the scene love these next few do's our next video we're gonna
8:33do an example
8:34and I'm gonna walk to the direct method up the operating section
8:38overcast

Cash Flow Statement Analysis Part 2 - Video Tutorial

Transcript

0:00

okay in our previous video we work through

0:04

the operating section %uh Turner

0:07

inks statement of cash flows and again you can find the

0:11

the templates you can find the problem right beneath this problem

0:14

every penny this video should say in this video

0:17

we're going to work through the direct method says I flip over to my excel

0:22

you can see I've completed the direct method I we did then

0:26

previous video on explained all the computations and this one we're going to

0:31

do an

0:31

indirect method I just for caution you again

0:34

my template is good is a assertive trial run are working through Steven a cash

0:39

flow

0:40

but it isn't great in that no company would ever do the direct and indirect

0:44

method side by side they're just choose one or the other

0:47

arm and so again I just want to caution you about using this that you wouldn't

0:53

ever wanna do both you just want to do one or the other I just wanna teach you

0:56

how to do both sought

0:57

I figured I do both side by side then we'd be able to make a bit like Paris

1:01

so the indirect method I like a lot alas

1:05

than the direct method direct method I feel like it explains well where cash

1:08

comes from and where we spend it wanna come saw parading

1:11

it the indirect method of summarizing our operating activities

1:14

says well net income is kinda like the summer real

1:18

are cashing in a cash it is a summary previn use in expenses

1:21

so why don't we just start there and work back or

1:25

and we finally net income is it a lot a backward steps

1:29

and that's to me a bit confused arm

1:33

so let's have a look in and we'll start with net income as as any indirect

1:37

method

1:37

I'll UTS section will start with

1:41

and so our company's net income was ten thousand dollars

1:45

so all-star task ha are amortisation expense

1:51

gets added back and I want to explain actually these next four items on my

1:55

list

1:56

not me highlight them a different color these four items

2:00

are all it's kinda like backwards day amortization expense when I see

2:05

amortization expense I wanna minus

2:07

expenses you subtract from Evans so think minus

2:10

if I have a good game

2:12

I think I'll at it well in these ones we're gonna do the exact

2:15

opposite of what you think to do so amortisation sense we're going to add

2:19

if we have a good game we subtracted if we have a loss

2:23

we added we have a gain on sale investment same thing we subtracted

2:27

we add back a las impairment losses was his lawsuit thing minus a lot no no no

2:33

you add it back this is likely opposite section are explained why I but but for

2:38

now just know that

2:39

games you're gonna minus here losses you're going to head back

2:42

and amortization expense uniting its expenses minus no no no

2:46

you add it back let me explain why so

2:50

what the indirect method is saying is this number net income ten thousand

2:54

dollars

2:54

this is a fair representation over cash flow from operations and it's not bad

2:59

estimate but it's not perfect

3:01

one other things we said in the last video now repeat here

3:04

is that amortisation this two thousand dollars amortisation and depreciation

3:09

expense

3:11

is not a cash expense so we've gotta say is

3:14

okay when we calculated net income of ten thousand dollars

3:17

up that was great we took out amortisation I'm minus two thousand

3:21

dollars to get that

3:22

to this 10,000 and you're saying now is

3:25

well yeah it's fine if we were if we wanna see net income

3:29

is a reasonable up measure of cash flow

3:33

well we know that this two thousand dollars had no impact on the cash

3:37

so if I minus that I did that in a rigid should not affect the Cashel

3:41

so what we do is meet add back the 2010 oh we shouldn't take out the 2004

3:46

looking for casual

3:47

were gonna add it back now as it it didn't it should have been taken out in

3:51

the first place

3:51

so that's why these four are kinda opposite

3:55

soul again we at Bagram it as Asian I want but that in a negative

3:59

gain or loss on sale love embed up

4:02

assets of the week we lost unassailable equipments a loss I would think minus

4:06

now we're going to add it back

4:08

the reason debt to do the opposite here is not because we didn't make money

4:13

on the sale of the asset or not because we didn't die have cash flowing

4:17

the reason we do this now

4:19

is because any sales have assets or investments are tracked not in the

4:22

operating section

4:24

day should be tracked in the investing section

4:27

so in investing when we sell equipment were gonna have a line here both cash

4:31

receipt done so

4:32

equipment so anything to do with the celeb assets

4:35

doesn't belong in the operating section

4:39

so that's why we back it out this company didn't have any investments or

4:43

impairment losses so nothing to worry about

4:45

are they didn't have prepaid rent but they did have taxes payable

4:50

what's have a look at our taxes payable are

4:54

our taxes payable want from twelve hundred to a thousand they went down by

4:58

a hundred and earth 200 and you gotta say to yourself

5:01

why the taxes payable go down why did it go from twelve hundred to a thousand

5:05

went down by 21

5:06

why was that while tax bill with them because you pay your taxes

5:11

so that two hundred dollars that went down is bad for your cash

5:15

I mean might be good for your standing with the government to pay your taxes

5:18

but

5:19

it's bad for your pocketbook you you cost yourself two hundred dollars

5:23

so this is a negative two hundred dollar impact on cash

5:27

I'll wages payable we don't have it

5:30

are accounts receivable we have the whole account receivable was thirteen

5:34

thousand last year eleven thousand this year

5:36

why would accounts receivable go down the reason it goes down

5:40

you collected the money so the fact that they are went down

5:43

is good for our money we add two thousand dollars

5:48

change in inventory let's see we did have an entire inventory when up

5:53

by four hundred why wouldn't hurt a lot but for it because we bought more

5:56

inventory

5:57

so that's bad for your money right if you have more inventory means you have

6:01

more money tied up in your intent

6:03

it's bad for cash prepaid insurance we didn't have

6:08

office supplies we didn't have

6:11

Accounts Payable we for sure had accounts payable

6:15

was four thousand last year 5800 this year are payable when up

6:19

writing that's bad I'll more people more money

6:22

it's bad because young people more money but it's good for your cash because it

6:25

means you're keeping it in your pocket

6:26

Walmart big companies will try to stretch their pails they don't want to

6:30

pay their payables on time they won out have them stretch as long as possible

6:34

why do they do that they want to keep the money in their pocket as long as

6:37

they can

6:38

so that that we have more payables and we had last year means we're keeping

6:41

more money in our pocket

6:42

should we had fewer payables it means we're paying I are our liabilities are

6:46

so that 1800 is actually a plus

6:50

to our cash flow fit asset-liability

6:53

but we're not going to worry about if it stands for future income taxes are

6:57

American cousins will call that deferred income taxes

7:00

on but just know that if it changes it could affect our cash flow statement and

7:06

in terms of other there is no other in in this problem but that's just to catch

7:10

on case are some

7:11

other crude liability that I messed I'll let sum up our lists

7:16

action let me do it this way and that equals that

7:19

talks that slap slot will all

7:22

sup sup what's that and what we find this is great news

7:27

is that we did the direct method on the left 16200 inflow

7:32

we did the indirect method on the right and we got the same inflow

7:36

and that has to be the case now it's a nice double text for us to do right now

7:40

but in reality you're only gonna do one way or the other

7:43

never do both new one care about having this little double check at the top

7:48

but it's nice to know that we got the same answer up both ways

7:51

so our overall inflow here is sixteen thousand two hundred and this is an

7:56

inflow from operating activities now

8:00

from here on the investing in the financing section are the same no matter

8:03

which method you choose

8:05

and again you just can choose one or the other let me just zoom back oh

8:09

a little bitch further and give us a bit about birds eye view

8:13

on the direct and indirect method they both get us the same place

8:17

but in my mind when I read it as a user

8:20

I get so much more information under the direct method than I do about

8:24

under the

8:25

direct the indirect I feel like I start with net income and I work backwards and

8:29

that these

8:29

it sees awkward adding back costs the ducting back revenues in

8:35

tracking changes in assets and liabilities with the direct method I

8:39

just feel like vultures are my cash came from in there is where it went I i feel

8:42

like it's a more logical

8:43

our method but that said most companies do use this indirect method so it's

8:49

definitely worth learning

8:50

om the final thing I'll leave you with this a little trick

8:54

for the indirect method and the trick is this

8:58

if I have an asset that goes up

9:01

then I last saw reaction on

9:06

a tat in there I 5 an asset that goes up

9:09

Ste then K

9:15

hash goes down serve an asset going up cash flows and this is for all those

9:19

change in

9:21

taxes payable change in accounts receivable if Ivan

9:24

asset going a heard me

9:27

down cash goes up

9:30

if I have a liability going up

9:33

cash goes up if i've a liability going down

9:39

cash goes down and

9:44

if I have a shareholder's equity account going up cash goes

9:49

up never have a shareholder's equity account going down

9:53

cash goes down and that rule whole

9:56

so whenever you're doing those change ins they should be easy you should be

9:59

able to logic your way through the mid if you can't

10:02

just remember this template in fact the only really need to remember

10:05

these two lines and then

10:08

you know know that the opposite is true and liabilities and shareholders equity

10:12

work the same way so you just remember liability ok

10:15

shareholders equity that's the same om but if nasa goes up cash cause I'm let's

10:20

test that let's look at our accounts receivable

10:22

accounts receivable went down so

10:25

accounts he was an asset it went down therefore cash goes up and sure enough

10:30

one account to see one down cash went up by two grand

10:33

so get another one let's look at our inventory inventory when

10:37

up by four hundred we set up an asset goes up cash was down

10:41

so to nasa going up cash was down and yes indeed

10:45

our cash went down by four hundred as a result that change in him into

10:48

now what you'll find is this just works if you look at this kinda chart on the

10:52

side

10:52

its I i think will be useful to you and the stuff it does work

10:57

you should be at the logically in for why it's happening but

11:01

if you're not able to do that just follow this chart is absolutely will get

11:06

you

11:06

where you need to go alright that's all for this part is a video

11:11

we've still that too big sections yet to do

11:14

we've got to do are investing section and that'll be the next video

11:17

and a final video on the financing section

11:20

and that'll be all

Cash Flow Statement Analysis Part 3 - Video Tutorial

Transcript

0:01

in this series of videos have been working through turn earnings cash flow

0:04

state

0:05

aqui earlier did the direct method for the operating section and

0:09

just the last video we worked on was the indirect method for the

0:13

operating sex in this video we're gonna do the investing section

0:17

so let me scroll down to the investing section and what we're trying to track

0:21

in the investing section remember

0:23

is sheesh the change in long-term asked if we bought long-term assets are we so

0:28

long term assets

0:29

day belong in the investing sex so the real

0:33

common long-term assets like property plant a quick like

0:36

bland buildings and equipment are also though the company bought and sold

0:41

investments like investments in other companies

0:43

it's there now would be tracked here's what they were long-term in nature

0:47

om so let's take a look at this problem in and certainly equipment change went

0:52

from fifteen to seventeen thousand that's a real indicator that we bought

0:55

some acquit

0:56

now as I scrolled down it actually has a quick most purchased for six thousand

1:00

dollars cash

1:01

well thats great information for RRR how up

1:06

cash flow statement to know that we but success in those who commit but went

1:09

from 50 to 70 that's not up by six thousand

1:12

and the reason is we also sold some equipment criminals original cost

1:17

4,000 and Akeem a.m. as Asian 500 salt so

1:21

we got a purchase an SL that still at the purchaser's we purchased equipment

1:24

for six thousand dollars cash

1:26

RNs got my command I go negative six thousand right we bought

1:31

equipment 60 those caps 1 out when every seed

1:35

cash paid it's a negative on a recent cash received it's a positive cash

1:40

received on the sale

1:41

equipment aren't we sold some equipment it doesn't give us very much information

1:46

it is equipment that the original cost $4000 and accumulated amortization 500

1:51

soul

1:51

but actually doesn't tell how much money we sold for but we can figure this out

1:56

remember whenever we sell equipment and his makeup for 10 journal entry over

2:00

here

2:01

we will credit the equipment

2:03

for the amount than the amount was four thousand dollars at the original cost

2:07

we also get rid of its accumulated amortisation

2:12

and now was five hundred dollars and we're gonna debit

2:16

cash whenever we sell equipment for some amount owed is put question marks are

2:20

now

2:20

feel that in a second but also when we sell equipment I want you to remember

2:24

that will experience that gain or loss unless its

2:27

you know perfectly store %uh the book value which would be unusual

2:31

so when we saw this equipment when I look at the income statement we

2:35

experienced the loss

2:36

a thousand dollars so we lost two thousand dollars on the cellmark women

2:41

so when we saw that we would have gone debit loss

2:44

on celeb equipment earth out box so this would be the first foal journal entry

2:49

debit cash

2:50

get ready the equipment and then record a gain or loss we'd editor cash we got

2:54

really the equipment and amortisation

2:56

you made amortization and we recorded a loss now

3:00

how much cash we received weekends on a blanket we go

3:03

we got twenty five hundred dollars there's also another way you could look

3:07

at this equipment you could say the equipment was worth four thousand and

3:10

five

3:11

-0500 was worst 3500 on my books

3:15

I sold it and I lost a grand on a cell so I musta got 25

3:19

like you can kinda insure that rate you can mentally are intuitively put that

3:23

together

3:24

anyway we got twenty-five hundred dollars a cash on this cell

3:28

so what's record that on we didn't have any investment in our company

3:36

so at this point we're done and this is going to be a negative

3:39

3500 and this of course represents

3:45

on outflow cash cash went down

3:48

as a result a bar investing activities how

3:52

as gonna split this into two videos but why bother let's do the financing

3:55

section now

3:56

so the financing section we're tracking

4:00

changes in equity i'm looking for. up

4:03

I actually changes in long-term liabilities as well as act some looking

4:06

for

4:07

new

4:07

loans are paying off a bold loans I'm also looking for share issues and the

4:12

final thing i'm looking for. is David

4:14

so I'll looks like

4:17

well actually let's let's go through our template cash paid for

4:21

reduction upon the long-term debt are we in terms of payables we only short term

4:26

liabilities in this company so there's no bonds or long-term debt but if we

4:30

did issue bonds or long-term debt are repaid it we would %uh

4:33

deal with their our cash received the nation's shares

4:37

song in terms of shares we did looks like we issued two thousand dollars and

4:42

shares

4:42

it doesn't see if we issue them for cash but I'm gonna make that assumption if it

4:47

doesn't said we

4:48

we should them for something else I'm gonna sue us for cash so we went

4:51

up by two thousand dollars in common shares up

4:55

that means that we went week got cash

4:59

and we issued more common shares are equity when up

5:02

and again when I look at my little cheat sheet at the top your shareholders

5:05

equity goes up

5:06

cash goes up so my cash would have gone up

5:11

by two thousand dollars as a result of this issuance of common shares

5:15

I'm gonna assume within redeem any common shares didn't tell us otherwise

5:19

last one cash paid for dividends this one a little bit tricky

5:23

it does say that the company declared dividends during the air but it doesn't

5:27

say for how much

5:28

and if you look at your income statement and you look at your balance sheet

5:31

there's no dividends on those dividends payable

5:34

there's no actual dividend map and you gotta ask yourself where are the

5:38

dividends what's the men are they on

5:40

and they're on the statement of shareholders equity or are the same in

5:43

retained earnings

5:44

into what you need to do its economy to prepare

5:48

your own statement of retained earnings to figure out this amount

5:51

how quickly do it here in Excel will do a quick statement of retained earnings

5:57

for this company just on the sidelines

6:00

me shots little acres here so are Stephen have retained earnings remember

6:08

what it tracks and is very rough attracted beginning retained earnings

6:12

you add net income

6:16

you sub-total you deduct

6:19

dividends and you get your

6:23

ending retained earnings so let's see what we can do with our company

6:26

our companies beginning retained earnings

6:29

was on the balance sheet the the big retained earnings at the beginning in

6:34

2012 is the same as at the end of 2011 it was forty 6100

6:38

we're gonna

6:42

add net income our net income comes from the bottle bring casinos 10 grand

6:47

were in a sub total

6:50

56001 heartburn we're gonna do not dividends now we don't know

6:56

but we do know are ending retainer sonar ending retained earnings was

7:00

up fifty 1600 so

7:08

we can aim for our defense we can figure out our dividends or dividend is the

7:12

difference between 56 one

7:13

and shitty 16 differences 45

7:17

group 4500 so that

7:22

is the amount over dividends but we're not done cash paid for dividend such a

7:28

man as a defense we declared

7:29

the fact that we have some dividends payable tells me that I might have paid

7:34

more less than what I declared

7:36

so we declared forty five hundred dollars in dividends and

7:39

in the air we promise to pay now the formula for cash

7:43

paid for dividends is

7:48

dividends

7:52

plus decrease

7:54

and dividends payable so for our company

8:00

our dividend amount we just calculated it was 4500

8:06

our dividends payable went from 31 to 15 went down by 1600 so there was a

8:13

decrease

8:13

6927 sweet paid more than just what we declared the CX we reduced what we owe

8:18

so forty five hundred-plus 1600

8:22

equals I believe 6100

8:25

sorry if this is a not visible I hope you can see that

8:30

4500 a 1600 at 6100

8:33

and that's the amount we paid for dividends our company didn't have any

8:39

other short term debt or other liability so at this point we can total up or find

8:43

it

8:44

section and

8:49

we show up forty one hundred dollars a hopeful from financing activities:

8:53

now we wanna know overall by the way I'm just not

8:57

out almost I a ride to the word info now the finals in line OES did our cash go

9:03

up or down

9:04

and how might I know that well I could look at the balance sheet cash

9:07

that's not what I wanted I wanna say okay are operations generated sixteen

9:12

thousand two hundred dollars in cash

9:14

are investing activities we bought 30 we spent thirty five hundred dollars net on

9:19

equipment

9:19

are financing activities we paid

9:22

forty one hundred dollars out the door so overall

9:27

16002 minus the 3500 minus the 4100

9:32

overall cash went up by eight thousand six hundred dollars

9:36

according to my our calculations here

9:39

now there's a very easy way to check this is why I love account that you

9:43

didn't double-check a lot to your work

9:45

how will I know of cash when a baby six hundred dollars I did all this work to

9:49

figure that out

9:49

do catch really go up by eighty six hundred dollars let's look on the

9:53

balance sheet cash last year was 36 1800 cash this year

9:57

forty-five thousand four hundred yes from last year

10:02

to this year

10:04

that looks to me all what did I do that looks to me like an eighty six hundred

10:09

dollar increase now

10:10

I don't know why that moves like that %uh anyway

10:13

you can see that that's an eighty six hundred dollar increase

10:18

cell all we do at the bottom hard cash flow statement as we say ok it was our

10:22

cash at the beginning to the year

10:24

January 1st 2012 well as our cash at the end of the year December 31st

10:31

2012 who its and did in fact increased by the amount we said it was just set

10:38

one up

10:39

8600 well will double check it out the box 36 8

10:43

245

10:47

for and just a quick XL will tell me that that minus that

10:53

yeah it change by 8609 I don't actually put that amount then you can use

10:57

I ball and see that yes we've gone up by 86 hundreds

11:02

alright I'm gonna stop recording here %uh

11:05

in our next to you we're just gonna do believe analysis on this and look at a

11:08

real cash flow statement to see how it compares to are kinda made up

11:12

simple site except that's all for this video

11:15

one more to go

Cash Flow Statement Analysis Part 4 - Video Tutorial