The main purpose of this module is to review the statement of cash flows in more detail.

Is there a difference between direct and indirect methods to make a statement of cash flows? Discuss and note two or three specific differences. In addition, clearly

Distinguish between cash flows from operating activities and cash flows from investing activities.

Compare the statement of cash flows with income statement using terms of net income and cash at end of the year.

Which of the two financial statements (income statement and statesment of cash flows) is the better one? Explain your reasoning.

Comment on differences between Apple’s and Samsung’s statement of cash flows.

Benedicto, M.S. (2008) Introduction to Financial Accounting. IE Business School. This is a multimedia presentation reviewing the four financial statements. The information is also available in a PDF file. Click on “accounting equation” tab. Retrieved from http://openmultimedia.ie.edu/OpenProducts/financial_accounting/financial_accounting/frames.html​

Edwards, J.D. & R.H. Hermanson (2007) Accounting Principles: A Business Perspective. Volume 1 Financial Accounting. The Global Text Project, Chapter 16. Retrieved from http://dl.dropbox.com/u/31779972/Accounting%20Principles%20Vol.%201.pdf

Madegowda, J. (2007). Management Accounting, Global Media (read chapter 5), from library portal.

Murthy, Guruprasad (2009). Financial Accounting, Global Media (read Chapters 21 and 22), from library portal.

Baruch College, The University of New York (2008). Guide to Financial Statements. This is a 45-minute interactive video presentation with audio. It is an excellent introduction and overview of financial statements. You do not have to watch the whole presentation at one time since it is easy to restart at different points. The information is also available in a PDF file.

Benedicto, M.S. (2008) Introduction to Financial Accounting. IE Business School. A multimedia presentation. The information is also available in a PDF file. Click on “Financial Statements Tab” and “Practical Example” tab. Retrieved from http://openmultimedia.ie.edu/OpenProducts/financial_accounting/financial_accounting/frames.html​

You may use the chapters and associated videos listed below as an additional resource.

Walther, L.M. (2010). Principles of Accounting: A Complete Online Text, chapters 5 through 16. Retrieved from http://www.principlesofaccounting.com/