ACFI1001 Lecture Notes - Lecture 5: Cash Flow Statement, Cash Flow, Financial Statement

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ceruleanbeaver564

23 Jul 2018

School

University of Newcastle

Department

Accounting

Course

ACFI1001

Professor

Marcus

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Document Summary

Cash is said to be the "life blood of a business", it is the medium by which assets are acquired, expenses are met, debts are paid and form of returns. Most organizations will not normally accept any other way of settling their claims against a business. A summary of the cash receipts and payments of the period. All payments are added together to give one figure which appears in the statement. Reconciliation of proft with cash flow from operating activites. The accounting standard requires a note that reconciles the profit or loss after tax with the cash flows from oa. This uses a system known as the indirect method= deducing the cash flows from operating activities in a cash flow statement by analyzing the business" financial statements. Only when an asset is sold can we calculate the actual depreciation incurred with complete accuracy. Bonus issues (result in an increase in share capital without any cash flow)

Related Questions

To compare statement of cash flows reporting under the direct andindirect methods, select "Direct", "Indirect" or "Both" indicatingthe method in which the line items are reported on the statement ofcash flows.

Cash Flows (and Related Changes) Statement of Cash FlowsMethod
1. Net income
2. Receipts from customers
3. Accounts receivable increase or decrease
4. Payments to suppliers
5. Inventory increase or decrease
6. Accounts payable increase or decrease
7. Payments to employees
8. Wages payable, increase or decrease
9. Depreciation expense
10. Cash flows from operating activities
11. Cash flows from investing activities
12. Cash flows from financing activities
13. Net increase or decrease in cash during the period

* you are going to get statement of cash flows method(choose one ofdirect, indirect, both)

peachalligator40

Which of the following is incorrect about the statement of cash flows?

a. It provides information about cash receipts and cash payments of an entity during a period.

b. It provides information about the operating, investing, and financing activities of the business.

c. It reconciles the ending cash account balance to the balance per the bank statement.

d. It is the fourth basic financial statement.

tealantelope264

Natalie Daniels has completed the basic format to be used inpreparing the statement of cash flows (indirect method) for CPUHardware Designers. All amounts are in thousands (000s).

CPU HARDWARE DESIGNERS Statement of Cash Flows For the year ended December 31, 2015
Cash Flows fromOperating Activities
Netincome
Adjustments for noncash effects:
Changesin current assets and current liabilities:
Net cash flows from operatingactivities
Cash Flows fromInvesting Activities
Netcash flows from investing activities
Cash Flows fromFinancing Activities
Net cash flows from financingactivities
Net increase(decrease) in cash	$	(28,000)
Cash at thebeginning of the period		90,000

Cash at the end ofthe period	$	62,000

Below, in random order, are line items to be included in thestatement of cash flows.


Cash received fromthe sale of land	$ 4,000
Issuance of commonstock	300,000
Depreciationexpense	30,000
Increase in accountsreceivable	70,000
Increase in accountspayable	11,000
Loss on sale ofland	8,000
Purchase ofequipment	230,000
Increase ininventory	40,000
Increase in prepaidrent	11,000
Payment ofdividends	50,000
Net income	80,000
Repayment of notespayable	60,000

Required:

Prepare the statement of cash flows for CPU Hardware Designersusing the indirect method. (List cash outflows and any decrease in cashas negative amounts. Enter your answers inthousands.)

CPU HARDWARE DESIGNERS
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash Flows from Operating Activities:

Adjustments to reconcile net income to net cash flows fromoperating activities








Net cash flows from operating activities		$0
Cash Flows from Investing Activities:




Net cash flows from investing activities		0
Cash Flows from Financing Activities:





Net cash flows from financing activities		0

Cash at the beginning of the period
Cash at the end of the period		$0

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ACFI1001 Lecture Notes - Lecture 5: Cash Flow Statement, Cash Flow, Financial Statement

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