I know many of you still confuse about what items should be included on a cash flow statement. Yet, which items should be included on each operating, investing and financing activities. This confusion arises as result of every company has different type of cash activities. I have gathered complete [or better to say “exhaustive”] list of items that commonly included on cash flow statements from various company [Taken from 10-K report to SEC]. I hope this list covers most [if not all] kinds of cash activities. If any of you found any different cash activities not included in this list, please feel free to leave it here through the comment form below.

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Common Direct Cash Flows Statement

[A]. Cash Flows from Operating Activities:

  • Cash received from customers
  • Cash paid to suppliers and employees
  • Income taxes received/(paid)
  • Interest received

Net cash provided/(used) by operating activities

[B]. Cash Flows from Investing Activities:

  • Investments in short-term notes receivable
  • Purchase of property and equipment
  • Other

Net cash used by investing activities

[C]. Cash Flows from Financing Activities:

  • Purchase of treasury stock
  • Transfers to/from ESP plan

Net cash used by financing activities

[D]. Decrease in cash and cash equivalents

[E]. Cash and cash equivalents at beginning of period

[F]. Cash and cash equivalents at end of period

 

Reconciliation of Net Income/(Loss) to Net Cash Provided/(Used) by Operating Activities

[A]. Net Income/(Loss)
[B]. Adjustments to reconcile net income to net cash provided by operating activities:

  • Depreciation and amortization
  • Provision for doubtful accounts
  • Noncash portion of officer note buy-out

[C]. Changes in assets and liabilities:

  • Accounts receivable
  • Inventory
  • Prepaid expenses and other assets
  • Income taxes receivable
  • Deferred income taxes receivable
  • Accounts payable and accrued expenses

Net cash provided by operating activities

 

 
Common Indirect Cash Flows Statement

[A]. Cash Flow from Operating Activities:

[1]. Net income
 
[2]. Items not requiring cash:

  • Depreciation and amortization
  • Deferred income taxes
  • Loss on disposal of property and equipment, net
  • Compensation expense related to restricted stock awards
  • Tax benefit from exercise of nonqualified stock options
  • Provision for store closings and impairment
  • Minority interest
  • Equity loss in joint ventures

[3]. Change in assets and liabilities:

  • Receivables
  • Inventories
  • Prepaid expenses
  • Income taxes, net
  • Accounts payable
  • Accrued expenses
  • Arbitration award
  • Other long-term obligations

Net cash provided by operating activities

[B]. Cash Flow from Investing Activities:

  • Purchase of property and equipment
  • Proceeds from disposal of property and equipment
  • Proceeds from disposal of assets held for sale
  • Acquisition of franchise markets, net of cash acquired
  • Investments in unconsolidated joint ventures
  • Purchases of investments
  • Proceeds from investments
  • Increase in other assets

Net cash used for investing activities

[C]. Cash Flow from Financing Activities:

  • Borrowings of long-term debt
  • Repayment of long-term debt
  • Net (repayments) borrowings from revolving line of credit
  • Repayment of short-term debt—related party
  • Debt issue costs
  • Proceeds from exercise of stock options
  • Proceeds from stock offering
  • Book overdraft (941)
  • Collection of notes receivable
  • Minority interest
  • Cash dividends paid

Net cash provided by financing activities

[D]. Net increase in cash and cash equivalents

[E]. Cash and cash equivalents at beginning of year

[F]. Cash and cash equivalents at end of year

Broader Examples Of Items Listed In The Cash Flow Statement

The propose of the next section is to provide a broader range of examples of the items reported in the operating, investing, and financing sections of the statement of cash flows. It is begun with a list which focuses on items included in the reconciliation of net income or net loss to operating cash flows.

Note: You will find example of companies in the bracket of item listed here. They are companies who ever reported the items on their 10-K Cash Flow Statement to SEC.

 

 
Additions and Deductions of Noncash Income and Expense Items

Additions:

  • Bad debt expense [ever reported by: Abiomed, Inc.]
  • Amortization of loan closing costs [ever reported by: AKI Holding Corp.]
  • Deferred tax provision [ever reported by: Alliant Techsystems, Inc.]
  • Write-off of fixed assets [ever reported by: ATC Healthcare, Inc.]
  • Recognition of loss on derivatives [ever reported by: Aurora Foods, Inc.]
  • Loss on disposition of capital assets [ever reported by: Blue Coat Systems, Inc.]
  • Noncash litigation charges [ever reported by: California Amplifier, Inc.]
  • Impairment of goodwill [ever reported by: DITECH Communications Corp.]
  • Tax benefit from stock options [ever reported by: H&R Block, Inc.]
  • Cumulative effect of accounting change [ever reported by: Keystone Automotive, Inc.]
  • Amortization of debt discount [ever reported by: Measurement Specialties, Inc.]
  • Equity in losses of affiliated companies [ever reported by: NDCHealth Corp.]
  • Pension expense, net of contributions [ever reported by: Piccadilly Cafeterias, Inc.]
  • Issuance of stock for services and fees [ever reported by: Powerhouse Technologies Group, Inc.
  • Impairment of seismic data library [ever reported by: Seitel, Inc.]
  • Provision for restructuring charges [ever reported by: Stratex Networks, Inc.]
  • Unrealized loss on interest-rate contract [ever reported by: The Fairchild Corp.]
  • Provision for inventory losses [ever reported by: The Singing Machine Co., Inc.]
  • Depreciation and amortization [ever reported by: Tommy Hilfiger Corp.]
  • Minority interest expense [ever reported by: Stewart Information Services Corp.]
  • Payment in kind (PIK) interest [ever reported by: US Home & Garden, Inc.]
  • Amortization of bond premiums [ever reported by: Value Line, Inc.]

Deductions:

  • Amortized sale and leaseback gains [ever reported by: Air Tran Holdings, Inc.]
  • Noncash pension settlement gain [ever reported by: Albemarle Corp.]
  • Equity earnings of affiliates, less dividends [ever reported by: Fuji Xerox Co., Ltd.]
  • Foreign currency transaction gains [ever reported by: Mentor Corp.]
  • Forgiveness of debt [ever reported by: Orion Diversified Technologies, Inc.]
  • Deferred income tax benefit [ever reported by: Q.E.P. Co., Inc.]
  • Interest earned on U.S. Treasury bills [ever reported by: Skyline Corp.]
  • Paid-in-kind interest income [ever reported by: The Fairchild Corp.]
  • Repositioning charge reversals [ever reported by: The Finish Line, Inc.] (2003)
  • Amortization of deferred licensing revenues [ever reported by: Tully’s Coffee Corp.]

 

 
Additions and Deductions for Non-operating Gains and Losses Items

Additions:

  • Early extinguishments of debt expense [ever reported by: Lawson Software, Inc.]
  • Purchased in-process R&D [ever reported by: Quantum Corp.]
  • Extraordinary loss on debt extinguishment [ever reported by: Sealed Air Corp.]
  • Loss on derivative instruments [ever reported by: Willis Lease Finance, Inc.]
  • Loss on ineffective swap [ever reported by: Workflow Management, Inc.]

Deductions:

  • Gain on insurance recovery [ever reported by: Great Lakes Aviation, Ltd.]
  • Gain on extinguishment of debt [ever reported by: Gunther Intl., Ltd.]
  • Gain on sale of discontinued units [ever reported by: Measurement Specialties, Inc.]
  • Gain on sale of property and equipment [ever reported by: Skyline Corp.]
  • Gain on settlement of interest rate swaps [ever reported by: Southern Union Co.]
  • Gains on sales of trading securities [ever reported by: Value Line, Inc.]
  • Gain on sale of water rights [ever reported by: Western Water Co.]

 

 

Additions and Deductions for Changes in Operating-Related Assets and Liabilities Items

Additions:

  • Sale of trading securities [ever reported by: Barra, Inc.]
  • Due from factor [ever reported by: Collins & Aikman Floor Co.]
  • Collections on notes receivable [ever reported by: DrugMax, Inc.]
  • Decrease in advances to models [ever reported by: Famous Fixins, Inc.]
  • Decrease in deferred costs [ever reported by: Harleysville National Corp.]
  • Decrease in accounts receivable [ever reported by: Lawson Software, Inc.]
  • Increase in deferred revenues [ever reported by: Oracle Corp.]
  • Increase in customer deposits [ever reported by: Prab, Inc.]
  • Self-insurance reserves in excess of payments [ever reported by: Publix Super Markets, Inc.]
  • Increase in accrued warranty liability [ever reported by: Quantum Corp.]
  • Decrease in refundable income taxes [ever reported by: Spartan Stores, Inc.]
  • Increase in bank overdraft [ever reported by: The Singing Machine Co., Inc.]
  • Accrued interest payable [ever reported by: Transnational Financial Network, Inc.]

Deductions:

  • Decrease in billings in excess of costs [ever reported by: Abrams Industries, Inc.]
  • Purchase of trading securities [ever reported by: Barra, Inc.]
  • Payment on amounts due to related party [ever reported by: Bluebook International Holdings Co.
  • Decrease in customer deposits [ever reported by: Prab, Inc.]
  • Additions to trading securities [ever reported by: H&R Block, Inc.]
  • Capitalized development costs [ever reported by: Fonefriend, Inc.]
  • Restructuring costs paid [ever reported by: Norstan, Inc.]
  • Cash overdraft [ever reported by: Peabody’s Coffee, Inc.]
  • Increase in accounts receivable [ever reported by: Medtronic, Inc.]
  • Increase in rental merchandise inventory [ever reported by: Rent-A-Center, Inc.]
  • Increase in restricted cash [ever reported by: The Singing Machine Co., Inc.]
  • Decrease in unearned income [ever reported by: Value Line, Inc.]

 

 

Items Classified as Investing Cash Sources

  • Proceeds from sale of discontinued operations [ever reported by: Barra, Inc.]
  • Net cash received in purchase acquisitions [ever reported by: DITECH Communications Corp.]
  • Proceeds from sale/leaseback transactions [ever reported by: Federal Express Corp.]
  • Proceeds from insurance recovery [ever reported by: Great Lakes Aviation, Ltd.]
  • Proceeds from casualty gain [ever reported by: Holiday RV Superstores, Inc.]
  • Decrease in restricted cash [ever reported by: Powerhouse Technologies Group, Inc.]
  • Proceeds from sale of equity securities [ever reported by: Quantum Corp.]
  • Dividends from 50%-owned company [ever reported by: Reliance Steel & Aluminum Co.]
  • Proceeds from sale of interest rate swaps [ever reported by: Southern Union Co.]
  • Distributions received from investees [ever reported by: Sports Arenas, Inc.]
  • Proceeds from sales of trading securities [ever reported by: Value Line, Inc.]
  • Proceeds from sale of trademark [ever reported by: VPGI Corp.]
  • Payments received on notes receivable [ever reported by: Western Water Co.]
  • Payments received on direct finance leases [ever reported by: Willis Lease Finance Corp.]

 

 
Items Classified as Investing Cash Uses

  • Additions to patents [ever reported by: Abiomed, Inc.]
  • Cash paid for acquisitions, net [ever reported by: DrugMax, Inc.]
  • Purchase of certificates of deposit [ever reported by: Earl Scheib, Inc.]
  • Purchase of bank-owned life insurance [ever reported by: Harleysville National Corp.]
  • Deposits made for equipment purchases [ever reported by: Milastar Corp.]
  • Theater productions in development [ever reported by: Momentum Holdings, Inc.]
  • Investment in lease contracts [ever reported by: Norstan, Inc.]
  • Purchase of Government Treasury bills [ever reported by: Odyssey Marine Exploration, Inc.]
  • Purchases of available for sale securities [ever reported by: Paychex, Inc.]
  • Brand development costs [ever reported by: Peabody’s Coffee, Inc.]
  • Investments in short-term notes receivable [ever reported by: Reconditioned Systems, Inc.]
  • Cash invested in seismic data [ever reported by: Seitel, Inc.]
  • Website development costs [ever reported by: Skyline Multimedia Entertainment, Inc.]
  • Distributions to holders of minority interest [ever reported by: Sports Arenas, Inc.]
  • Capital costs of internal use software [ever reported by: TDI Holding Corp.]
  • Software development costs [ever reported by: Tech Data Corp.]
  • Business acquisitions net of cash acquired [ever reported by: Tommy Hilfiger Corp.]
  • Net increase in restricted cash [ever reported by: Transnational Financial Networks, Inc.]
  • Additions to intangible assets [ever reported by: Tully’s Coffee Corp.]
  • Additions to land [ever reported by: Western Water Co.]

 

 

Financing Cash Inflows Items

  • Sale-leaseback transactions [ever reported by: American Airlines, Inc.]
  • Net proceeds from exercise of warrants [ever reported by: Aura Systems, Inc.]
  • Contribution of capital [ever reported by: Avery Sports Turf, Inc.]
  • Proceeds from initial public offering [ever reported by: Lawson Software, Inc.]
  • Proceeds from exercise of stock options [ever reported by: Mentor Corp.]
  • Issuance of notes payable [ever reported by: Odyssey Marine Exploration, Inc.]
  • Proceeds from terminated interest rate swaps [ever reported by: Pall Corp.]
  • Proceeds from stock subscriptions [ever reported by: Powerhouse Technologies, Inc.]
  • Tax benefit of stock options exercised [ever reported by: Reliance Steel & Aluminum Co.]
  • Proceeds from short-term debt [ever reported by: The Finish Line, Inc.]
  • Issuance of common stock [ever reported by: 3COM Corp.]
  • Borrowings on subordinated debt [ever reported by: Translational Financial Network, Inc.]
  • Checks drawn in excess of bank balances [ever reported by: Tully’s Coffee Corp.]
  • Release of restricted cash [ever reported by: Western Water Co.]

 

 

Financing Cash Outflows Items

  • Payments for incurred IPO costs [ever reported by: Align Technology, Inc.]
  • Increase in restricted cash [ever reported by: DrugMax, Inc.]
  • Increase in deferred financing costs [ever reported by: DrugMax, Inc.]
  • Payments of life insurance loans [ever reported by: Earl Scheib, Inc.]
  • Repayment of secured note [ever reported by: Measurement Specialties, Inc.]
  • Settlement of forward contract credit [ever reported by: Medtronic, Inc.]
  • Dividends paid [ever reported by: Mentor Corp.]
  • Financing fees paid [ever reported by: Spartan Stores, Inc.]
  • Net cash settlement of put options [ever reported by: 3COM Corp.]
  • Payments on line of credit [ever reported by: Trans-Century Resources, Inc.]
  • Payments on settlements payable [ever reported by: Translational Financial Network, Inc.]
  • Payments to minority interest stockholders [ever reported by: Unify Corp.]
  • Stock issue costs [ever reported by: US Dataworks, Inc.]
  • Payments on capital lease obligations [ever reported by: US Dataworks, Inc.]
  • Preferred stock dividends [ever reported by: Western Water Co]
  • Debt issue costs [ever reported by: Willis Lease Finance Corp.]
  • Purchase of derivative instruments [ever reported by: Willis Lease Finance Corp.]
  • Cash settlement of interest-rate swap [ever reported by: Workflow Management, Inc.]
  • Payment of litigation payable [ever reported by: XDOGS, Inc.]

 

 

Special Income Statement Items – Disclosure of Operating, Investing, and Financing Cash Flow for Discontinued Operations

Cash flow from operating activities:

  • Income (loss) from continuing operations
  • Net cash provided by operating activities of continuing operations
  • Net cash used in discontinued operations
  • Net cash used in investing activities of continuing operations
  • Net cash provided (used) in investing activities of discontinued operations
  • Net cash used in financing activities of continuing operations
  • Net cash provided (used in) financing activities of discontinued operations

 
Partial Operating Activities Section

Operating Activities:

  • Net income (loss)
  • Adjustments to reconcile net income (loss) to net cash provided by operating activities:
  • Cumulative effect of a change in accounting principle (net of tax)
  • Depreciation and amortization