Cash Flow – Cash Flow Notes

US Cutie asked:


Thank you very much!

Jaclyn Defina

answerman asked:


I’m guessing they’re both investing activities but I’d like to hear what others say and why. Thank you.

Felipa Poehlman

Internet Has Taken Over! asked:


Hi all. I’m trying to do a cash flow forecast but am wondering whether I’m using the right figures.

* I have the opening balance as the cash book balance after reconciliation, not the bank balance. I’ve used this to show what cash is really available once all creditors have cashed our cheques…even if right now we still have the money. Is this correct? (I plan to amend each months opening balance to the cash book balance as I go along)

* I add the sales & other revenue projected for the month.

* Then I add the forecast expenditure for the month. This amount is all DD’s, SO’s and card payments expected for the month, but all cheques written as well regardless of whether they are cashed in the month or not. If they have been written in July, they’re on July’s expenditure, even if I expect it to cash in another month. Is this typical? Another accepted method? Or wrong?

So overall is this correct. Is it an actual ‘cash flow forecast’. If not, is it an acceptable form? What should be changed? I’d really appreciate a fleshing out why to help me understand where I’m wrong, or an alternative approach. I guess there’s one form of a forecast that involves the expenditure in the month it’s expected to be cashed. But I feel that doing that might make it seem like you have more money to use going into a month than in reality.

Thanks very much for your time. This has been bugging me as to whether it’s right or not and I’m concerned about presenting the data in case it’s incorrect. As a side point, would a bank accept this form of forecast for funding decisions?

Thank you kindly!

Leon Jelden

Heidi Reynolds asked:


Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

A)$2,000$2,000$2,000$2,000$2,000$2,000
B)$ 500$ -0-$ 500$ 500$ 500$ -0-
C)$ 100$ 200$ 300$ 400$ 500$ 600
D)None of the above represent annuities.

Please explain if you can.

Sommer Darland

stranger in moscow asked:


if i paid 10k $ more cash to vendors during the year than the amount of cost of goods sold expense for the year so that means i increased inventory .. but .how could i increased accounts payable by doing that ?

Matt Bockenstedt

WiNtEr asked:


What exactly are they !??! are they just how much you have made in sales in the first month !?!, i don’t really get it

Juliet Busman

Lena asked:


How does reissuance of treasury stock affect the cash flow statement?

Gussie Bodor

Monika H asked:


accounting

Vivien Elson

Zan asked:


Could anyone please give me the Cash Flow analysis for Larsen & Toubro Ltd (L&T Ltd) for the 66th annual report (year ending 2010-2011). NOT the Cash Flow Statement. I require an ANALYSIS of the Cash Flow Statement in Words. Thank You.

Trevor Goodchild

angelcdm228 asked:


I am so lost and confused, I **** at accounting but I have to take it, this is my last course I have to take on it, and I keep messing up this cash flow statement. Please help me out!!
Instructions:
The comparative balance sheet for XYZ company as of Dec 31, 2010 and 2009 is shown followed by the condensed income statement. Other financial information data for 2010 is also provided…

Prepare a state of cash flows for 2010, Additional infromation for 2010 follows:
a) acquired land at cost of $60,000; paid one-half of purchase price in cash and issued common stock for teh balance
b) sold used equipment for $20,000 in cash. the original cost of $40,000 depreciation of $10,000 had been taken. THe remaining change in the property, plant, and equipment account represents a purchase of equipment for cash. the total depreciation expense for the year was $9,000
c) issued bonds payable at par value for cash
d) sold bond investments costing $20,000 at no gain or loss during the year.
e) paid $20,000 cash dividends on the common stock

ANALYZE: BY WHAT PERCENTAGE DID CASH INCREASE FROM JANUARY 1 to DECEMBER 31?

Comparative Balance Sheet
Assets 2010 2009
Cash 116875 53250
Accounts Receivable (Net) 86000 67250
Merchandise Inventory 82650 74000
Prepaid Rent 5500 4500
Land 85000 25000
Property Plant and Equip. 189000 219000
Less Accumulated Depreciation PPE (20900) (21900)
Investment in TVA Bonds 30000 50000
Total Assets 574125 471100

Liabilities & Stockholders Equity
Liabilities
Accounts Payable 66300 86600
Income Taxes Payable 9250 9500
Bonda Payable 140000 100000
Total Liabilities 215550 196100

Stockholders Equity
Common Stock 105000 75000
Retained Earnings 253575 200000
Total Stockholders Equity 358575 275000
Total Liability and Stockholdes Equity 574125 471100

Condensed Income Statement Year Ended Dec 31, 2010
Revenues 809000

Cost and Expenses
Cost of Goods Sold 475750
Depreciation Expense 9000
Selling and Administration Expenses 197650
Interest Expense 18500
Loss on Sale of Equipment 10000
Income Taxes Expense 24525
Total Cost and Expenses 735425
Net Income After Income Taxes 73575

That is all the information I have to go by, and please note the Analyze portion listed above as well. Please help me with this project so that I can take my test and move on! The book didn’t go into much detail, research online has only confused me, and help from the instructor hasn’t helped, I think I confused myself way to much trying to research it and look at examples.

Violet Casteneda