2023 CFA Level I Exam: Topic 3. Financial Statement Analysis - Learning Module 20. Understanding Cash Flow Statements

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	1. Classification of Cash Flows and Non-Cash Activities compare cash flows from operating, investing, and financing activities and classify cash flow items as relating to one of those three categories given a description of the items; describe how non-cash investing and financing activities are reported; contrast cash flow statements prepared under International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (US GAAP);
	2. Preparing the Cash Flow Statement compare and contrast the direct and indirect methods of presenting cash from operating activities and describe arguments in favor of each method; describe how the cash flow statement is linked to the income statement and the balance sheet; describe the steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data; demonstrate the conversion of cash flows from the indirect to direct method;
	3. Cash Flow Statement Analysis analyze and interpret both reported and common-size cash flow statements; calculate and interpret free cash flow to the firm, free cash flow to equity, and performance and coverage cash flow ratios.

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