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Facilitator Guide

Cash Flow Statements

What’s covered

  • General description and structure
  • The direct and indirect methods 
  • Operating activities and adjustments to net income
  • Investing activities 
  • Financing activities

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/discussions/cash-flow-statements/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

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    Course

    Cash Flow Statements

    Cash flow is fundamental to a company’s ability to stay in business. This course explains cash flow statements and how they’re used to track cash from a company’s operating, investing and financing activities.

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    Exercise

    PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

  • What’s the purpose of a cash flow statement? How is it used?
  • What are the three sections of a cash flow statement?
  • What’s the indirect method and why is it commonly used?
  • What are common adjustments made to net income in a cash flow statement? 
  • What’s the impact of a bad debt expense on a cash flow statement?
  • What’s the impact of accounts payable on a cash flow statement?
  • Do a company’s investing and financing activities result in any adjustments to a company’s net income on a cash flow statement?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

  • Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
  • General practice tips (dos and don’ts)
  • Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Accounting & Finance topic.