Abstract:

Statement of cash flows that presents important information about firm’s power of cash generation and cash consumption is a reliable source of information for financial statement users. Therefore, financial reporting standards require cash flow statement to be reported and presented with the other financial statements such as statement of financial position, statement of comprehensive income, and statement of changes in equity. Turkish Accounting Standard 7 – “Statement of Cash Flows” (TMS 7 – Prepared accordance with International Accounting Standard 7 (IAS 7)) contains how statement of cash flows would be reported and presented. Major components of statement of cash flows are Cash Flow From Operations (CFFO), Cash Flow From Investing Activities (CFFIA), and Cash Flow From Financing Activities (CFFFA). The sign of those activities whether it’s positive or negative provides useful information about cash flows of the firm. Analyzing those components based on “Cash Flow Patterns Method” is one of the easiest and useful analyzing methods. In this study, profile of three components of 176 listed firms’ statements of cash flows prepared by TMS 7 for the years 2007- 2010 have been analyzed by “Cash Flow Patterns Method”. The analysis has been done by the year, industry, and assets size. Based on those three variables, cash patterns of the listed firms were found as; “Pattern 2: successful firm”, “Pattern 4: growing firms”, and “Pattern 6: fast growing-young firm”.

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