91) Non cash activities such as an exchange of shares for a piece of equipment do not need to be disclosed.
92) IAS7 expresses a preference for the indirect method.
93) The majority of organizations use the indirect method when preparing their statement of cash flows.
94) IAS 7 indicates the direct method as the preferred one.
95) Under the indirect method, amortization expense must be added back to net income under the operating activities.
96) Free cash flow is calculated by taking net cash flow for the year less planned investments in property, plant, equipment and other long term assets.
97) When calculating cash flow from operations, an increase in prepaid expenses would be added in to the cash flow.
98) A decrease in interest receivable would be added in to the cash flow from investment section of the Statement of Cash Flows.
99) An increase in common shares would be added into the cash flow from investing activities section of the Statement of Cash Flows.
100) Free cash flow is calculated by taking net cash flow provided by operations less cash flow marked for investment in property, plant, equipment and other long term assets.