Cash Flow Statement explained

[@TheFinanceStoryteller]

Be sure to click the like button, subscribe and turn on notifications to ensure you don't miss anything. The Shell cash flow information featured in this video relates to 2016. Want to have a look at the revenue, margins and cash flow based on the very latest quarterly financial information, then browse through the information on Shell on the Simply Wall Street site: bit.ly/3FCljmT

[@xavier7208]

The Finance Storyteller hey! Thanks for sharing this informative video! I’m a rising entrepreneur and I love the way you broke it down. I do have a question as I’m filling out my Cash Flow statement. What is the “Pre Start Up Estimate”? Are you supposed to list the estimated totals for the whole year or input the start up cost etc? Thank you!

[@TheFinanceStoryteller]

@@xavier7208 That question is very hard to answer without seeing the template or form that you are using. My initial thought is that it might mean "the numbers you forecast/estimate at the point in time when you haven't officially started", in other words it indicates that you are at a point (timestamp) when there is inherently a lot of uncertainty about what will actually happen and how it reflects on your expected results.

[@xavier7208]

The Finance Storyteller thank you!! 🙏🏿

[@markmower1746]

​@@TheFinanceStorytellerI saw only cash flow statement "investment in an employee". Can you explain what that would mean on a cash flow statement?

[@TheFinanceStoryteller]

@@markmower1746 Hi Mark! I have never seen that before, so can't explain. Was it a publicly listed company? If so, which one and which year of reporting?

[@rubylove44]

I have been all over KZbin and google trying to get a clear understanding of Cash Flow without the jargon. Thank you so much for the bathtub analogy!!!

[@TheFinanceStoryteller]

You're welcome! Thanks for the kind words. Enjoy the bathtub! :-)

[@TheFinanceStoryteller]

Take a look at my case study example of Tesla (not the latest numbers) as well for an illustration of how cash flow works: kzbin.info/www/bejne/g5a6fYeQh9qAi5I

[@Inzpiregill]

I have been studying financial statements for months, I know the terms but didn't see the practical use of them. Thanks to this and your other videos it's very clear now. Gives a way other lens for businesses. Puts every department/ aspect of a business in perspective. Thank you for explaining with use cases..

[@TheFinanceStoryteller]

Thank you, Gilberto! That is a beautiful compliment. I am happy and moved to read it!!! You have worded it very well. I think I want to quote you on my Linked In profile. :-) I hope you will enjoy the replay of my recent webinar on the quarterly results of Uber Technologies as well: kzbin.info/www/bejne/bmikmJKendiYhaM or the list of all my finance case studies (includes Facebook, Neflix, etc.) kzbin.info/www/bejne/hnqciWiPl8qelac

[@Inzpiregill]

Wonderful, will dive into them soon. Thank you

[@TheFinanceStoryteller]

@@Inzpiregill Great! Let me know what you think about them, once you have watched them.

[@berniceolarinde6444]

Thanks because of you and your videos I got 100% in my accounting exam thank you so much 😊

[@TheFinanceStoryteller]

Oh wow, that is excellent. Congratulations! You study hard, and go the extra mile to find additional information like my videos that can help you. So happy for you!!!

[@berniceolarinde6444]

The Finance Storyteller thanks so much

[@sibusisofaya7874]

100% how??? Accounting? How?? How?

[@inamoka12345]

Man just really said skill issue

[@mrmoe5272]

Your Bathtub analogy raised my head above water in my exam>no pun intended. Thank you sir .

[@TheFinanceStoryteller]

Very happy to hear that! :-) Thank you for watching, and please share!

[@azbrah3181]

Nice, clear and short explanation without any extra editing/effect. Straight to the point, thank you and subcribed!

[@TheFinanceStoryteller]

Thank you, Az! I think cash flow is a fascinating topic, so I have many videos on various aspects of it on my channel.

[@tagiwachikondo6308]

You are really good at explaining basic concepts even to people without a financial background. I am so glad i decided to watch and listen to your tutorial on liquidity. Finance is now coming easy to me.

[@TheFinanceStoryteller]

Thank you so much, Tagiwa! Love to hear that. :-) I really enjoy studying these topics, and then sharing what I have learned with others. Please spread the word. ;-) Let me know if there are any more topics that you would like me to cover!

[@tagiwachikondo6308]

@@TheFinanceStoryteller .. Thats awsome. Yes i have a topic on solvency and just the basic general understanding of solvency would be really great.

[@TheFinanceStoryteller]

Great topic! Liquidity is a company's short term ability to cover current liabilities. Solvency is about the ability to cover total debt in the longer term. I need to put my thoughts together for a video. In the meantime, my video on the current ratio (a measure of liquidity) might be helpful for you: kzbin.info/www/bejne/mpzMhIqFZ7SMntE Or more in general, my video explaining various financial ratios:kzbin.info/www/bejne/g4XUaHurq9R6mc0

[@jasonsoong4308]

Simply put, your tutorial is super clear for laymen like me, really appreciate your sharing!

[@TheFinanceStoryteller]

Thank you for the comment, that's exactly what I am trying to achieve: take away the "mysteries" around financial terminology. I have grouped all cash flow related videos that I made in a playlist, I have some more examples of analyzing how cash flow works in financial statements: kzbin.info/www/bejne/j5q4kHeOobGNatU

[@cristelamejica]

Very well explained! I have an exam tomorrow and this is a lifesaver. U deserve more subs! Thank you for this✨

[@TheFinanceStoryteller]

So happy to hear that! Please spread the word. :-) I have a few more videos on my Finance Storyteller channel around cash flow (walk-throughs of real life company examples, direct vs indirect cash flow methods), maybe these might be useful for you as well. Wishing you all the best for your exam.

[@vcronen]

@@TheFinanceStoryteller Hi i am trying to find the indirect and direct method explanation here kzbin.info/door/QQJnyU8fALcOqqpyyIN4sgv can you please send me the link ? I am up late studying, probably why I can't "see" it lol

[@ube-23s]

Thank you , I think these people making comments are not into Accounting.This video is just cash flow info. Accounting majors should check your other Accounting videos.

[@alioschemarinosanchez7211]

Thank you so much for your explaination. Very easy to understand for a beginner.

[@TheFinanceStoryteller]

Glad to hear that! More examples and case studies in this playlist: kzbin.info/www/bejne/nZ2WgH-qer1lhq8&pp=gAQBiAQB

[@jasminavandewyck1536]

Thank you, I am new to Accountancy terminology and this video really helped put things into perspective.

[@TheFinanceStoryteller]

Nice to hear that, Jasmina! Hope you find lots to discover on the Finance Storyteller channel. :-)

[@njokikaranja3458]

The explanation was precise, clear and right down to the point....THANK YOU!! THANK YOU!!

[@TheFinanceStoryteller]

Thank you, Njoki! I have a cash flow statement playlist with some more examples for you: kzbin.info/www/bejne/j5q4kHeOobGNatU

[@one_two_three_Cheese]

I love the bathtub analogy. I was struggling to understand the statement of cash flow but your video was the most helpful for beginners

[@TheFinanceStoryteller]

So glad! Once you get that part, no cash flow statement, or bathing session for that matter, will ever be the same! 😉

[@mingyangwang2600]

THANK YOU SOOOOO MUCH!!!!!! I will survive from my HR finance exam

[@TheFinanceStoryteller]

Wishing you all the best in taking your exam. I have a lot of videos on the Finance Storyteller channel walking through the cash flow statement, watch as many as you like. ;-)

[@pierrestewart6592]

Wow thanks I wish you were my teacher

[@TheFinanceStoryteller]

Happy to help! The advantage of a virtual teacher like me is that I am available 24/7. 😉

[@san9292]

Every time I hear like finest storyteller video. But it is true :)

[@TheFinanceStoryteller]

Thank you, Santhosh!!! :-)

[@yaruichen7122]

Thanks for your video! It's quite easy to understand with your explanation and vivid pictures.

[@TheFinanceStoryteller]

Glad it was helpful, Yarui! Many more examples and case studies in this playlist: kzbin.info/aero/PLKbmcnUUQMlk40AJjucuCmTZn6PMESa8X

[@ellieeeee615]

Incredible. Thank you for explaining everything!

[@TheFinanceStoryteller]

Glad it was helpful! More cash flow statement discussion/examples in this playlist: kzbin.info/www/bejne/j5q4kHeOobGNatU&pp=gAQBiAQB

[@Godcreatedmj1]

At 1:00 I already like your session and I will subscribe to enhance my studies in Accounting class this semester! Thanks

[@TheFinanceStoryteller]

Thank you for the kind words! Good to hear you liked it. I have grouped the videos on my channel into playlists for easier navigation. One of the playlists contains all cash flow related videos (12 so far) that I have made: kzbin.info/www/bejne/o4ulm6Z_jtd_rK8 There are also playlists about balance sheet and income statement. Let's work together to get you to straight A's this semester! ;-)

[@aquataylorr]

Thank you so much for the explanation this is helping with my assignment

[@TheFinanceStoryteller]

Great! I think cash flow is a fascinating topic, so I have quite a few videos on the various aspects of it on my channel. Enjoy!

[@whimsy_vision]

Mine too this is the subject of our project work

[@jankimp]

Thank you so much for these amazing videos. They have been so helpful to me. I would love to understand more about the 13 week cashflow - concept, why its needed, how does it help, etc... there are many other videos on youtube but yours are the best and easy to understand. thank you again

[@TheFinanceStoryteller]

Happy to hear that!!! I try to make the material as "accessible" as possible. Can you clarify what you mean with 13 week cashflow - concept? Is this related to having 13 weeks in a quarter, and trying to maximize cash flow prior to quarter end? Let me know!

[@jankimp]

@@TheFinanceStoryteller Hello, I am in the process of finishing my turnaround certifications. I would love to know basic concepts of the 13 week cashflow, how they are used, how to create one etc - Does this clarify. thank you very much

[@TheFinanceStoryteller]

Thank you, that does clarify, but I am sorry to say that I cannot offer any specific expertise on that subject.

[@monicodoctor7980]

I understand this way better now!! Thank you!

[@TheFinanceStoryteller]

Great to hear that! I have more examples of analyzing the cash flow statement in this playlist: kzbin.info/www/bejne/j5q4kHeOobGNatU

[@joshuachristensen4009]

What a great video! You're great at explaining and this was exactly the video that I needed. Thank you!!

[@TheFinanceStoryteller]

Thank you for the kind words, Joshua! I find cash flow a fascinating topic. Here's the link to more examples and case studies: kzbin.info/www/bejne/nZ2WgH-qer1lhq8

[@l.vazakas2501]

So undervalued

[@TheFinanceStoryteller]

Agree! ;-)

[@marioroche6284]

bathtub analogy was fire thank you

[@TheFinanceStoryteller]

Thank you, Mario!

[@sumitsaikia6050]

Explaination is more than best.. helped me..

[@TheFinanceStoryteller]

Thank you very much, Sumit!

[@mosaradwan]

Thank you , very clear and useful you but terms in perspective

[@TheFinanceStoryteller]

Glad it was helpful! More cash flow statement discussions in this playlist: kzbin.info/www/bejne/nZ2WgH-qer1lhq8

[@EmanueleLeschiera]

well done, very helpful thanks

[@TheFinanceStoryteller]

You're welcome! More examples and explanations of cash flow in this playlist: kzbin.info/www/bejne/nZ2WgH-qer1lhq8

[@jasonsoong4308]

Really appreciate your sharing. Is really easy to understand no fanciful terminology e.g. the bathtub theory :-)

[@TheFinanceStoryteller]

Taking a bath will never be the same after watching this video! ;-)

[@arunmukherjee8727]

I'm from india ..Nice explanation

[@TheFinanceStoryteller]

Thank you, Arun! Greetings back from the Netherlands.

[@ingn4907]

Thank you, thank you and thank you!

[@TheFinanceStoryteller]

You're welcome! You're welcome! You're welcome! :-)

[@tGoldenPhoenix]

Thank you

[@MrGimmy1234]

Please do one video for bankers about how to analyse financial statements for commercial lending . Thanks

[@TheFinanceStoryteller]

Thank you for the suggestion, Tharindu, but that is not really my area of expertise.

[@freakosigma123]

I like the video, the content is pretty nice. Could you please make an analysis of freakonomics one day or another:)?😍

[@TheFinanceStoryteller]

I have read the book called "Freakonomics" many years ago, but it's not something I think I will make a video about.

[@teem6977]

Thank you so munch !

[@TheFinanceStoryteller]

You're welcome!

[@NiNE0s]

1:33 Exemplified in the cash flow statement

[@AB-xj3co]

excellent video, very helpful. thank you!

[@TheFinanceStoryteller]

You're welcome! Thank you for watching. :-) I have lots of videos on various aspects of cash flow on my channel, it's one of my favorite topics.

[@AB-xj3co]

Subbed.😊

[@TheFinanceStoryteller]

Great! Please tell your friends and colleagues as well. ;-)

[@momenttom4969]

Awesome content. Ik ben fan. Tippie; ik denk dat je de kwaliteit van je video's met c.q. 20% omhoog kan halen door een goede audio apparatuur aan te schaffen. Ik kan je daar evt mee helpen. Anyway, bedankt voor de content!

[@TheFinanceStoryteller]

Graag gedaan. Ik heb sinds eerder dit jaar een nieuwe "setup", kijk/luister maar eens naar een recente video van de afgelopen tijd, dat klinkt een stuk beter.

[@Drstar-rg9wp]

U r Arabian 🤩.. Proud of u

[@TheFinanceStoryteller]

I am actually Dutch (i.e. from the Netherlands), but have visited the UAE many times.

[@felicia3525]

Great video, thanks. Subscribed.

[@TheFinanceStoryteller]

Thank you! I have a few more videos on the topic of cash flow on my channel, look forward to hearing what you think about them.

[@suprafan246]

Another easy to understand video. Just one question.On the slide showing Shell's Cash Priorities, are the four items at the bottom explaining how they are going to achieve these goals?

[@TheFinanceStoryteller]

Hi Elery! Yes, those four items were the key priorities/actions at the time (2016/2017) to improve cash flow as well as cash balance. In 2018-2019, the oil price increased to the $60-$80 level, which helped their CFOA and decreased the pressure to cut CapEx spending. Strangely enough, in March/April 2020, Shell is in a very similar situation as in 2016 now that the oil price is back at the low level of around $30 again. Haven't looked up any recent presentations from Shell or other oil companies yet, but I would expect to see very similar slides!

[@rushikeshk25]

Great video

[@TheFinanceStoryteller]

Thank you! I have done 12 videos related to cash flow so far, grouped into the following playlist: kzbin.info/www/bejne/o4ulm6Z_jtd_rK8

[@berniceolarinde6444]

Very useful thanks

[@TheFinanceStoryteller]

Happy to hear that, Bernice! Thank you for watching. :-)

[@victoradejoh9532]

What information a company can get from the Statement of Cash Flow? Please analyze using numerical support. b) What useful information is obtained from carrying out a Comparative Analysis (on Cash Flow Statement)? c) How is managerial planning facilitated by analyzing the Cash Flow Statement? d) What Investing Activities (of a Cash Flow Statement) should be examined?

[@TheFinanceStoryteller]

Hello Victor. This sounds like you are posting your homework questions for me to answer. Feel free to watch any of my videos related to cash flow, and then answer the questions yourself. Some suggestions: Tesla cash flow development over time kzbin.info/www/bejne/amq3qaGlhZmobrs and free cash flow explained kzbin.info/www/bejne/nZ2WgH-qer1lhq8 and free cash flow in the business plan kzbin.info/www/bejne/fHSTi4J6jKutptE

[@victoradejoh9532]

@@TheFinanceStoryteller Sincerely you caught me there. I have now watched several of your video, I have a better understanding plus your analogies are great. However, I still have a challenge with what useful information is obtained from carrying out a comparative analysis on cash flow statement. Thanks in anticipation 🙏

[@TheFinanceStoryteller]

Comparative analysis: the item-by-item comparison of two or more comparable alternatives, processes, products, qualifications, sets of data, systems, or the like. You could compare the cash flow numbers for one and the same company over the years by category (operating, investing, financing), or between two similar companies (e.g. two of the Big Techs) during the same year. It provides you with benchmark data and shows you trends.

[@victoradejoh9532]

@@TheFinanceStoryteller Thank you for your fine response. Also to be honest you really give prompt response. I am grateful.

[@TheFinanceStoryteller]

You're welcome, Victor! Please tell your fellow students about the channel. :-)

[@jake40341]

I love learning accounting from Ser Davos

[@TheFinanceStoryteller]

I have no idea who that is, but hope I can consider that a compliment! Thank you for watching.

[@jake40341]

@@TheFinanceStoryteller He's one of the characters from game of thrones... He sounds similar to you. And btw the video was awesome.

[@TheFinanceStoryteller]

Thank you! If you are interested in learning more about cash flow, I have grouped my videos for that area (14 in total, including walk-throughs of cash flow statements of well-known companies) in a playlist: kzbin.info/www/bejne/nZ2WgH-qer1lhq8

[@sergioquinche7700]

thank youuuuuuuuuuuuuuu

[@TheFinanceStoryteller]

You're welcome, Sergio! 🙂

[@Erez.Levi.Stocks]

hi amigo.. thanks for another great video. During the 3 minute to 4 minute video you show with how much money the company has finished, For example at the end of 2012 the company finished with 18.6B. Where does this number come from?

[@TheFinanceStoryteller]

Ciao! The "bags of money" (cash balances at year end) are taken from the assets section of the balance sheet. The cash flow amounts are taken from the cash flow statement.

[@PatrickPitso]

Nice explanation ✌️

[@TheFinanceStoryteller]

Thank you, Patrick! Cash flow is one of my favorite topics, I have a few more examples available for you to watch: kzbin.info/www/bejne/j5q4kHeOobGNatU

[@oshenephillips7164]

Good explanation

[@TheFinanceStoryteller]

Thank you!

[@sidmoitra007]

Thank you sir!

[@TheFinanceStoryteller]

You're welcome, Siddhartha! Thank you for watching.

[@kibilostintranslation9700]

dankje kerel!

[@TheFinanceStoryteller]

Graag gedaan, makker! :-)

[@roymangayil4509]

Do we take short term provision as current liability while determine cash generated from operation.

[@TheFinanceStoryteller]

Changes in operating assets and liabilities (increase or decrease of the balance versus prior year end) are impacting CFOA. Yes, this includes short term provisions.

[@Intothemarket101]

Thank you so much for your for your useful data ! Greatly appreciated.

[@TheFinanceStoryteller]

Nice to hear that! Thank you. I have many more videos about various aspects of the cash flow statement, and examples of real life companies, in this playlist: kzbin.info/www/bejne/j5q4kHeOobGNatU

[@hussainkyz5070]

Very Helpful!

[@TheFinanceStoryteller]

Great to hear that! :-)

[@naweedmusleh8218]

thanks dear its a very good lesson for me thanks once again

[@TheFinanceStoryteller]

Very nice to hear that! I have a few more videos on this channel related to cash flow. Enjoy!

[@mohammedshammas9216]

Hi.. firstly, thank you so much for this brilliant video. May I know what is ‘NET OPERATING CASH FLOW’? Is it the same as operating cash flow or is it total cash at the end after reducing investment and financing cash flow? Your help would be greatly appreciated.

[@TheFinanceStoryteller]

Hello Mohammed! Net Operating Cash Flow sounds very similiar to Cash From Operating Activities. Unfortunately, different companies use slightly different wordings, so I would advise you to check the glossary of the annual report where you came across this term. For example, I used to work at a company called GE (General Electric) who at the time defined Operating Cash Flow as CFOA (Cash From Operating Activities) minus CapEx, which is the same as what other companies would call Free Cash Flow: kzbin.info/www/bejne/nZ2WgH-qer1lhq8

[@mohammedshammas9216]

The Finance Storyteller thank you so much for replying. We were asked to find the self financing capacity (not ratio, but money in figures) of the company using their annual report. I’m assuming it would be the net cash from operating activities without taking investing or financing activities. Was quite confused on that part. Your videos were a great help though. We always learn something new everyday! :)

[@TheFinanceStoryteller]

That is a good assignment! ;-) I would argue that Free Cash Flow is the number you are looking for. See my video on that topic, or the related one on business plan financials: kzbin.info/www/bejne/fHSTi4J6jKutptE

[@MrHareth1983]

enlightening. thanks

[@TheFinanceStoryteller]

You're welcome! Happy to hear that.

[@bilalahmed3307]

amazing explanation.

[@TheFinanceStoryteller]

Thank you, Bilal! :-)

[@arsulaksono881]

why deprecitation is considered "positive" income in minute 8.09 ? I though it needs to be negative / subtracted

[@TheFinanceStoryteller]

You deduct it in the income statement as an expense, which lowers net income. Then for cash flow purposes, you add it back, as it is a non-cash expense. In other words, you neutralize the depreciation impact. Take a look at some of the case study examples in this playlist: kzbin.info/www/bejne/o4ulm6Z_jtd_rK8

[@nayyabmedhat2100]

At 7:17 when you have presented the cashflow in numbers, why is depreciation is not in parenthesis as it is cash outflow?

[@TheFinanceStoryteller]

Hello Nayyab. This overview is using what is called the indirect method of cash flow reporting: start with net income, and add back any non-cash expenses, changes in working capital, etc. Depreciation was deducted in the income statement to calculate net income correctly, however as you do not pay depreciation to anyone (it is a non-cash journal entry), you need to add it back in the cash flow statement. See also kzbin.info/www/bejne/aKXVkGl6Z7h4adk

[@gauravsharda6551]

Depreciation is not a cash flow item? Is that correct ?

[@TheFinanceStoryteller]

Hi Gaurav! Correct. The cash for property, plant and equipment leaves the company when it is purchased. If you subsequently depreciate this property, plant and equipment, then you simply allocate the value over the years of usage (debit depreciation expense, credit accumulated depreciation) with no cash impact. For cash flow purposes, using the indirect method of cash flow reporting, please note that depreciation has been deducted as an expense to get to net income, and then has to be added back when getting from net income to CFOA. More information in my playlist with cash flow related videos: kzbin.info/www/bejne/j5q4kHeOobGNatU

[@julietsmulders8678]

Hi! Zou je in het Nederlands kunnen uitleggen wat het verschil is tussen ''use of cash'' en ''source of cash'' ik kan de nederlandse termen niet vinden, alvast bedankt! Groetjes

[@TheFinanceStoryteller]

Hallo Juliet! Een "cash flow statement" heet in het Nederlands een "staat van herkomst en besteding der middelen" of een kasstroomoverzicht. Hoe stroomt het geld in en uit het bedrijf tijdens een kwartaal of een jaar. Een ''source of cash'' is waar het geld vandaan komt (bijvoorbeeld een nieuwe lening van de bank aan het bedrijf tijdens de periode), en ''use of cash'' is waar het geld aan besteed wordt (bijvoorbeeld een nieuwe machine kopen tijdens de periode). Ook verwarrend is dat we in Nederland een onderscheid maken tussen kas (papier- en muntgeld wat in de la van een kassa zit) en bank (geld wat een bedrijf op de bank heeft). Amerikanen noemen beide "cash".

[@Angelllllllll446]

Hello dutch accent

[@TheFinanceStoryteller]

Hahaha! 10 points for figuring that out. ;-)

[@BhagyanagarRE]

She's is a bloody German

[@ScoopingCelebrities]

Anyone know why depreciation and amortization is positive in operating element?

[@TheFinanceStoryteller]

Yes! Depreciation and amortization were deducted as an expense in the income statement. Once you start putting together the cash flow statement based on what is called the indirect method, you need to add back the depreciation and amortization (that's why they are a "positive"). So first deduct, then add back. Depreciation and amortization are expenses, but they are not paid in cash to anyone. See also my video on direct vs indirect cash flow statement: kzbin.info/www/bejne/eqqZmo2bltB_h5Y and any of my cash flow case studies reviewing real-life companies in detail: kzbin.info/www/bejne/j5q4kHeOobGNatU

[@ScoopingCelebrities]

The Finance Storyteller You are so helpful. Thank-you so much will def check them out. 👍🏾

[@RAJUsssssg]

Cash flow for e comers = costomer buying any product (in xx money)- ecommerce Web give tax +company expenses ? Am i right

[@TheFinanceStoryteller]

Don't just think about the margin/profitability side, but also about working capital (accounts receivable, inventory, accounts payable).

[@kierank1147]

is there any good example questions for university level?

[@TheFinanceStoryteller]

Can't help you on that one, but can recommend watching my video on direct method cash flow statement versus indirect method, as this might come up: kzbin.info/www/bejne/eqqZmo2bltB_h5Y

[@edilsonnhancale2969]

🙏🏼👍🏽❤️

[@TheFinanceStoryteller]

😊😎

[@theboombody]

The statement of cash flows, the one financial statement that's never as useful as it should be.

[@rorronoazorro6107]

video is nice etd but ...no hard feelings, hire someone to comment your videos please

[@TheFinanceStoryteller]

Thank you!

[@cedrikpeter4908]

Great work but sounds like JHZER lol

[@TheFinanceStoryteller]

Thank you for the first part of the comment. Regarding the second part, no clue who or what that is, but: DKDC. ;-)

[@TheFinanceStoryteller]

What was your biggest challenge in learning how the cash flow statement works? Let me know by commenting below!

[@aishanadeem6861]

I have a confusion in finding financing and operating activities values through comparison of 2 balance sheets

[@petemiller2598]

The individual line items are sometimes confusing to me. For example, in your Shell example, why is Shell receiving 25B in cash from depreciation? That does not make sense to me, as assets depreciating would not be magically creating cash, right?

[@TheFinanceStoryteller]

@@petemiller2598 Hello Pete! That is completely correct. The cash goes out of the company when you buy the fixed asset, as cash outflow from investing activities. Accounting for depreciation is purely an allocation of that amount you purchased the asset for into expense, over the years of usage. The depreciation journal entry does not affect cash directly. Here is how that works: depreciation was deducted in the income statement as a cost, and in order to adopt the cash flow perspective you then have to add it back in CFOA to "offset" that. As in: -1 +1 = 0. It is a "correction". Does that make sense?

[@TheFinanceStoryteller]

As follow up, you could watch my video on direct method and indirect method cash flow statement, maybe that clarifies it a bit: kzbin.info/www/bejne/eqqZmo2bltB_h5Y

[@ayebalce2827]

Tt

[@kassabjoe9340]

[@TheFinanceStoryteller]

Thank you!

[@brendanbourne1369]

This was a great video however I had to dislike it purely because you are Dutch

[@TheFinanceStoryteller]

Hi Brendan! Life is all about making trade-offs. :-)

[@brendanbourne1369]

ja het is

[@johnm9548]

audio is TERRIBLE!!!!!!!!

[@TheFinanceStoryteller]

But the content is fantastic! ;-) I think the sound on the more recent videos is better, I have many more on the topic of cash flow on my channel.

[@shahidchaudhary52]

Sooooooooo! boring

[@TheFinanceStoryteller]

Sorry to hear you feel that way.

[@vladynick]

There's an "s' at the end of dollars!! This is basic English!! $31.1 billion dollarS (not $31.1 billion dollar) !!

[@TheFinanceStoryteller]

Thank you for pointing that out. As far as I was aware, both could be used.

[@BhagyanagarRE]

In America and capitalistic world what matters is bucks.. bucks do the talking.. Rest of the world put too much focus on English grammar philosophy etc

[@kingkang6877]

Stop being a loser and criticizing the grammar

[@abedmh5956]

Thank you

[@TheFinanceStoryteller]

You're welcome