Understanding the Statement of Cash Flows in Hospitality Management Accounting - Prof. Hyu, Study notes of Hospitality and Tourism

Download Understanding the Statement of Cash Flows in Hospitality Management Accounting - Prof. Hyu and more Study notes Hospitality and Tourism in PDF only on Docsity! 1 © 2011, Educational Institute Chapter 4 The Statement of Cash Flows Hospitality Industry Managerial Accounting Seventh Edition (462TXT or 462CIN) © 2011, Educational Institute 1 Competencies for The Statement of Cash Flows 1. Explain the purposes of the statement of cash flows and how the statement is used by hospitality managers. 2. Identify cash flows as reported on the statement of cash flows in terms of operating activities, investing activities, and financing activities. 3. Explain the direct and indirect methods of converting net income to net cash flow from operations. (continued) © 2011, Educational Institute 2 Competencies for The Statement of Cash Flows (continued) 4. Describe the four-step approach to preparing the statement of cash flows. 5. Identify issues involved in the analysis of statements of cash flow.