FAR — Quick Sheet
Statement of Cash Flows
Read time: ~5 minutes
One-minute revision
- Interest paid/received, dividends received → Operating (US GAAP)
- Dividends paid → Financing
- Buying/selling PP&E or investments, lending → Investing
- Issuing stock/debt, repaying debt principal, buybacks → Financing
- Indirect method: add back non-cash expenses (depreciation, losses); subtract gains; asset ↑ = cash ↓, liability ↑ = cash ↑
COMMON TRAP: Under US GAAP, dividends received are operating; dividends paid are financing. Candidates frequently mix these up.