📖 现金流量表（CFS）结构与项目

Financial Statement Analysis

I. Lesson Focus

This lesson explains the structure of the cash flow statement (CFS), the classification of cash flows into operating, investing, and financing activities, the differences between the direct and indirect methods, and the specific line items that belong in each section. Mastery of these classifications, adjustments, and the reconciliation between accrual profit and cash generation is essential for financial statement analysis.

II. The Problem

A company reports strong net income, yet its cash balance keeps declining. Investors cannot determine whether the firm is genuinely generating cash from its core business or simply surviving on external financing. The cash flow statement solves this by reclassifying all cash movements into operating, investing, and financing categories, revealing the true sources and uses of cash and preventing analysts from being misled by accrual-based earnings.

III. Overall Structure and Preparation Basis of the Cash Flow Statement

The cash flow statement reports the inflows and outflows of cash and cash equivalents during a period. Cash and cash equivalents include cash on hand, demand deposits, and short-term, highly liquid investments with maturities of three months or less.

Two preparation methods are required knowledge: - Direct method: Lists major classes of gross cash receipts and payments from operating activities (e.g., cash received from customers, cash paid to suppliers). - Indirect method: Starts with net income and adjusts for non-cash items and changes in working capital to arrive at cash flow from operations. The indirect method is more frequently tested on the CFA exam.

The statement is divided into three sections: 1. Cash flow from operations (CFO) 2. Cash flow from investing (CFI) 3. Cash flow from financing (CFF)

The sum of the three sections equals the net increase (or decrease) in cash and cash equivalents, which must reconcile to the change in the cash balance on the balance sheet.

IV. Operating Activities (CFO) — Items and Adjustments

Operating activities reflect cash generated by the firm’s core business. Under the indirect method the formula is:

$$ \text{CFO} = \text{Net Income} + \text{Non-cash expenses} - \text{Non-cash revenues} \pm \text{Changes in operating working capital} $$

Common adjustments: - Add back: depreciation and amortization, impairment losses, interest expense (under US GAAP), increase in deferred tax liabilities. - Subtract: gains on sale of assets (if included in net income), increase in deferred tax assets, investment income recognized but not received in cash. - Working-capital changes: increase in accounts receivable decreases CFO; increase in inventory decreases CFO; increase in accounts payable increases CFO.

Under the direct method the major items are: - Cash received from customers = Revenue + Decrease in receivables (or – Increase) + Increase in unearned revenue (or – Decrease) - Cash paid to suppliers = Cost of goods sold + Increase in inventory (or – Decrease) – Increase in accounts payable (or + Decrease)

V. Investing Activities (CFI) — Item Identification

Investing activities primarily report the acquisition and disposal of long-term assets and investments.

Typical inflows: - Proceeds from sale of property, plant, and equipment (PPE) or intangibles - Cash received from sale or maturity of investments - Dividends and interest received (under IFRS may be classified as operating or investing; under US GAAP interest received is usually operating)

Typical outflows: - Purchases of PPE and intangibles - Cash paid for acquisitions of securities intended to be held long-term

Note: PPE acquired on credit (increase in accounts payable) does not appear in CFI; it is disclosed in the notes.

VI. Financing Activities (CFF) — Item Identification

Financing activities capture transactions with owners and creditors.

Typical inflows: - Proceeds from issuing equity or debt

Typical outflows: - Repayment of principal on debt - Cash dividends paid - Cash paid to repurchase shares

Critical classification rules: - Interest paid: must be operating under US GAAP; may be operating or financing under IFRS. - Dividends paid: must be financing under US GAAP; may be operating or financing under IFRS. - Principal portion of lease payments is classified as financing.

VII. Treatment of Non-cash Transactions

Significant non-cash investing and financing activities (e.g., acquiring PPE by issuing shares or bonds) do not appear in the body of the cash flow statement but must be disclosed in the notes or supplemental schedule.

Worked Cases

Case 1: Indirect-method CFO Calculation (Basic Adjustments)

A company reports net income of CNY 5 million. Additional data: - Depreciation CNY 0.8 m - Increase in accounts receivable CNY 0.6 m - Decrease in inventory CNY 0.3 m - Increase in accounts payable CNY 0.45 m - Impairment loss CNY 0.15 m - Investment income (cash received) CNY 0.25 m

$$ \begin{align} \text{CFO} &= 5.0 + 0.8 + 0.15 - 0.25 \ &\quad - 0.6 + 0.3 + 0.45 \ &= \text{CNY } 5.85 \text{ million} \end{align} $$

Case 2: Converting Between Direct and Indirect Logic

Net income CNY 4.2 m, depreciation CNY 1.5 m, increase in receivables CNY 0.8 m, increase in unearned revenue CNY 0.2 m, increase in inventory CNY 0.35 m, decrease in payables CNY 0.25 m.

Indirect-method CFO: $$ 4.2 + 1.5 - 0.8 + 0.2 - 0.35 - 0.25 = 4.5 \text{ million} $$

The direct-method logic (cash receipts from customers minus cash paid to suppliers) yields the identical CNY 4.5 m result, illustrating that both methods must reconcile to the same CFO figure.

Case 3: Full-statement Classification Exercise

Selected transactions: 1. Credit sales of CNY 1 m (cost CNY 0.6 m) 2. Cash purchase of equipment CNY 2 m 3. Issuance of bonds for cash CNY 3 m 4. Payment of prior-year trade payables CNY 0.8 m 5. Interest paid CNY 0.25 m (US GAAP) 6. Cash dividends paid CNY 0.4 m 7. Depreciation expense CNY 0.5 m

Classification: - CFO includes net income (assumed CNY 0.9 m after adding back depreciation) + depreciation – interest paid (under GAAP) plus working-capital adjustments. - CFI = –2.0 m (equipment purchase) - CFF = +3.0 m – 0.4 m = +2.6 m

The net change in cash equals CFO – 2.0 + 2.6, which must tie to the balance-sheet cash movement.

Traps

Key Formulas

• CFO (indirect) = Net income + Non-cash charges – Non-cash revenues ± Δ Operating working capital
• Net change in cash = CFO + CFI + CFF
• Cash received from customers = Revenue – ΔAR + ΔUnearned revenue
• Cash paid to suppliers = COGS + ΔInventory – ΔAP
• Cash outflow for PPE = Ending net PPE – Beginning net PPE + Depreciation + Book value of assets sold
• FCFF ≈ CFO + Int(1 – tax rate) – Capex

Practice Questions

Q1. Under US GAAP, interest paid to creditors is most likely classified as:
A. Operating cash outflow
B. Financing cash outflow
C. Investing cash outflow
D. Non-cash transaction

Q2. Which of the following would cause CFO calculated under the indirect method to be higher than net income?
A. An increase in inventory
B. A decrease in accounts receivable
C. A decrease in depreciation expense
D. A decrease in unearned revenue

Q3. A company acquires a factory by issuing common stock. On the cash flow statement this transaction should:
A. Appear as both a financing inflow and investing outflow
B. Be disclosed only in the supplemental non-cash activities schedule
C. Affect both CFO and CFI
D. Be ignored entirely

Q4. Net income is CNY 2 m, depreciation CNY 0.8 m, increase in receivables CNY 0.5 m, decrease in inventory CNY 0.3 m, increase in payables CNY 0.4 m. CFO is closest to:
A. CNY 2.6 m
B. CNY 3.0 m
C. CNY 2.0 m
D. CNY 1.8 m

Q5. Under IFRS, interest received may be classified as:
A. Operating only
B. Either operating or investing
C. Financing only
D. Investing only

Q6. Which of the following is most likely an investing cash outflow?
A. Payment of cash dividends
B. Purchase of long-term debt securities
C. Repayment of long-term bank debt
D. Payment of employee salaries

Q7. All else equal, a large increase in accounts payable will:
A. Decrease CFO
B. Increase CFO
C. Have no effect on CFO
D. Affect only CFI

Q8. Equipment with original cost CNY 1 m and accumulated depreciation CNY 0.7 m is sold for CNY 0.45 m. The investing section should report cash inflow of:
A. CNY 0.3 m
B. CNY 0.45 m
C. CNY 0.15 m
D. CNY 0.75 m

Answers

Takeaways

• Know exactly which items belong in CFO, CFI, and CFF under both US GAAP and IFRS.
• The indirect-method reconciliation starts from net income and centers on adding back non-cash charges and correctly signing working-capital changes.
• GAAP versus IFRS differences for interest and dividends are high-yield testable points.
• Non-cash transactions never enter the main cash-flow statement but must be disclosed.
• Working-capital directional signs are the most frequent calculation trap.
• PPE cash flows are derived by combining balance-sheet changes with depreciation and gains/losses from the income statement.