1. Chapter 11 Cash and Cash Flows
Understand reasons for renewed cash emphasis.
Explain the importance of cash to a firm.
Understand the content of the statement of cash flows.

2. Cash and Cash Flows Primitive or Primary? Family Feud? WT Grant
New prominence
First direct fruit of framework
Rod Tidwell-Poster Person for Cash Flows

3. Cash and Cash Flows
Cash flow positives = Accrual negatives

4. Reporting Cash Flows Past pronouncements: Funds Flows
APB Opinion 3, 1963-recommended as supplement
SEC, 1970-required
APB Opinion 19, all WC-required

5. Reporting Cash Flows Then….SFAC 1 (1978).. cash
SFAS 95 (1987) Cash F low Statement
Information gap: change in cash
Operating, investing and financing activities
Noncash investing and financing
Format: direct vs indirect
Cash Flow Patterns-Dugan-relationship between operating, investing, and financing

6. Importance of Cash Flows
Importance: cash vs. profit
New Cash Flow Ratios

7. Evaluating Cash Flows Research shows useful and better than wc.
Some picking of nits.
Good example of theory and standard setting working together…I told you so.
Updates.
Disc. Topics 4 & 5