Cash Flow – Cash Flow Notes

NINA asked:


Ticket revenue122m
product sales140m
cogs 80m
sal exp 100m
operating expense 20m
deprec.expense 3m
income tax expense 12m
changes in balance sheet accounts are as follows:
A/R 2m Accounts Receivable
Equip 4m
A/P Account Payable(5m) decrease
S/P Salary Payable(1m) decrease
Income tax payable 2m
accrued liability 8m
common stock 18m
Retained earnings 29m
Prepare a statement of cash flows using the direct method.

Sandy Contraras

Muhammad asked:


I have read my text book thrice and still cannot understand about cash flow statement’s chapter.
I would like you to explain me how to draft its statement, including its usages for the business. Moreover, if you can then please also mention few relevant websites from where I can find about it.

Daniel

jkearse93 asked:


In what way would increasing the time it takes suppliers affect the statement of cash flows? Is this change sustainable?
In what way would increase the time it takes to pay suppliers affect a firms statement of cash flows? If there is a change to the statement of cash flows, then is it sustainable.

Lisha Fahrni

Hippay asked:


I’m analyzing cash flow statement: Other non-current assets end/beginning: 476,528/518,074.

But the analysis says: “No “other” non-current assets (which relate to investing activities” were purchased this period. How do you reckon the decrease then?

Another question:
Depreciation and amortization end/beginning: 2,277,842/2,048,510

Yet here they write that depreciation and amortization totaled 234,230 i.e. slightly more than a simple calculation of the change. Why?

Katharine

Bess asked:


Say you incurred $1,000 from buying an equipment, but you weren’t going to pay for it until next year (next financial year).

Does this affect Statement of Cash Flow at all? If so, is it investing, operating, or financing? Whyyy?

If it doesn’t affect SCF, what does it affect? :X

Royal Derhammer

Chris asked:


What would happen to my shares in advanced Australian military weapons company with lots of prototypes and intellectual property, but serious cash flow problems if the company was sold overseas?

Tara Camara

woodenorwire2 asked:


Let’s say this business is a Quality Furniture limited Company

Dorian Osterhouse

Lon W asked:


please help me

Oliva Gibbins

maotalker asked:


Pretty self-explanatory. Just need to know how to treat it. Thanks.

Carla Companion

Devadas C asked:


1.The cash flow statement is a required statement that must be prepared along with an income statement, statement of comprehensive income, balance sheet, and statement of retained earnings.

2.A cash flow statement indicates the sources and uses of cash during a period.

3.In preparing a cash flow statement, the issue of debt should be reported separately from the retirement of debt.

4.Cash flow from investing activities is considered the most important category on the cash flow statement because it is considered the best measure of expected income.
5.Any item that appears on the income statement would be considered as either a cash inflow or cash outflow from operating activities.

6.Using the indirect method, an increase in accounts payable during a period is deducted from net income in calculating cash provided by operating activities.

7.If the balance of prepaid insurance increases during a period, it indicates more cash was expended for insurance than is reported in the income statement.

8.The investing section of the cash flow statement is prepared by analyzing changes in short-term notes payable and long-term liability and equity accounts.

9.In preparing net cash flow from operating activities using the direct method, each item in the income statement is adjusted from the accrual basis to the cash basis.

10.Cash flow from operating activities will be the same under both the direct and indirect methods of cash flow statement preparation.

Shantay Blakelock