COMMERCE 1AA3 Lecture Notes - Lecture 12: Deferral, Retained Earnings
Document Summary
The direct method: collections from customers, collections = beg. A/r + revenues ending a/r: payments to suppliers. A/p: payments fro operating expenses, payments for operating expenses = operating expenses + changes in. Prepaid expenses changes in accrued liabilities: payments for income taxes and interest, payments for interest = beg. Balance + acquisitions depreciation carrying amount of assets. Balance: sales proceeds = carrying amount of assets sold + gain loss. Balance + purchases carrying amount of investments sold = end. Balance + new loans made collections = end. Balance + borrowing of new debt repayments of debt = end. Balance + issuance of new shares repurchase of shares = end. Balance + net income dividends declared = end. Balance: loss on sale = net book value selling price, *net book value = historical cost accumulated amortization, change in accumulated amortization = amortization expense .
