Cash Flow – Cash Flow Notes

Aztec asked:


I’m confused…is the Free Cash Flow ratio a profitability, solvency, or liquidity ratio? I thought it was a profitability ratio but when I checked online, I’ve seen it as all 3 and now I’m lost. Can someone give me a definite answer?

Regan Melamed

ashley asked:


How are entries made under each type of accounting?
o How does each type of accounting handle depreciation, if at all?
o How is inventory accounted for?
o Are there any differences between the organizations that adopt a particular accounting method?
o What are the strengths and weaknesses of the various types of accounting?

Gilbert Profitt

Marie asked:




Laurie

mkrugler asked:




Maxie Mastriano

?SA-Spurs? asked:




Eleonora Farlow

Cindy asked:




Sang Sagun

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

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

ReallySilly asked:


I am learning analysis of financial statements….

Celia Lone

ejb.123 asked:


If a business has a net cash flow for June of £35 000 and an opening balance of (£12 500), what is its opening balance for July?

Chrissy