O BJECTIVES ( STATEMENT OF CASH FLOW ) : B USINESS A CTIVITIES AND C ASH F LOWS Classifying Cash Flows

Operations Cash received and paid for day-to-day activities with customers, suppliers, and employees. Investing Cash paid and received from buying and selling long-term assets. Financing Cash received and paid for exchanges with lenders and stockholders. B USINESS A CTIVITIES AND C ASH F LOWS The Statement of Cash Flows focuses attention on: 12-2

Cash Checking and Savings Accounts Cash Equivalents Highly liquid short-term investments within three months of maturity. B USINESS A CTIVITIES AND C ASH F LOWS Currency 12-3

Classifying Cash Flows 12-4

Cash inflows and outflows that directly relate to revenues and expenses reported on the income statement. Operating Activities 12-5

Investing Activities Under Armour’s 2008 Investing Activities 12-6

Financing Activities Under Armour’s 2008 Financing Activities 12-7

E12-7 Preparing and Evaluating a Simple Statement of Cash Flows (Indirect Method) Required: 2. Prepare a statement of cash flows using the indirect method. 12-8