Training Guide

Cash Flow Statements

Hotshot

Training Guide

Cash Flow Statements

Topic
Accounting & Finance
Duration
Format
Remote or in person

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/trainings/cash-flow-statements/attendee

Prepare Yourself

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

  • still frame from Structure and the Direct and Indirect Methods

    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.

  • Icon of a document

    Exercise

    Cash Flow Statements

    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.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.

Contact us at info@hotshotlegal.com if you’re interested in a free consultation about remote training for your firm.

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