33:390:310 Lecture Notes - Lecture 3: Reserve Requirement, Income Statement

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limeherring262

17 Sep 2017

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Decrease in asset // increase in liability source of cash. Increase in asset // decrease in liability use of cash. If assets went up, bought an asset, cash went down. If assets went down, sold an asset, cash went up. If liabilities went down, you made a payment, cash goes down. Cash flow and financial statements: a closer look. Sources of cash- activities that bring in cash. Net addition to cash = (uses of cash) (sources of cash) Statement of cash flows- summarizes the sources/uses of cash in the accounting period. Another way to show this is by making a sources and uses of cash flows statement . Represents each balance sheet item as a percentage of total assets. When you show change between the two years, the total % must be 0% Liabilities and stockholders" equity is a % of total liabilities and s/e. Operating activities, investing activities, financing activities: operating activities.

Related Questions

MG770- Financial Reporting, Financial Statement Analysis, andValuation
Homework Assignment
Week # 3
__________________________________________________________________________

Create the statement of cash-flow with indirectmethod

Interpret the result of the statement of cash flow withpercentage

Instruction:

[1] Please use the balance sheet as follows to classify eachactivity (operating, investing, and financing) from the column ofdifferent.

[2] please create a new statement of cash-flow from yourclassification on balance sheet.

[3] The statement of cash flow will be provided to measure thecompanyâs cash flow situation. Also, you need to interpret theresult of your measurement.

Balance sheet

SILVERT CORPORATION
Balance Sheet
December 31
			Different	Operating	Investing	Financing
	2012	2011
ASSET
Cash	$ 28,000	$20,000	$8,000
Receivable (net)	70,000	62,000	$8,000
Other current assets	90,000	73,000	$17,000
Long-term investment	62,000	60,000	$2,000
Plant and equipment (net)	510,000	470,000	$40,000
Total Assets	$760,000	$685,000	$75,000

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$75,000	$70,000	$5,000
Long-term debt	80,000	90,000	($10,000)
Common stock	330,000	300,000	$30,000
Retained earnings	275,000	225,000	$50,000
Total liabilities and stockholdersâ equity	760,000	685,000	$75,000

]2] Create the statement of cash-flow by using the indirectmethod. Company has net income as starting point of $80,000.

STATEMENT OF CASH FLOW

*Operating Activities*
Net Income	$ 80,000





Cashflow from Operations

*Investing Activities*



Cashflow from Investing

*Financing Activities*



Cashflow from Financing

ambergoose526

Below is a firm's cash flow statement. What are its operatingcash flows, financing cash flows and operating + investing cashflows?

Net loss	$ (2,221)
Depreciation and amortization	375
Impairment charges	427
Merchandise inventories	1,213
Merchandise payables	(526)
Other operating assets	(649)
Net cash used in operating activities	(1,381)
Proceeds from sales of property and investments	386
Purchases of property and equipment	(142)
Net cash provided by investing activities	244
Proceeds from debt issuances	1,962
Increase (decrease) in short-term borrowings	(797)
Proceeds from sale-leaseback financing	71
Debt issuance costs	(51)
Net cash provided by (used in) financing activities	1,185
NET INCREASE IN CASH AND CASH EQUIVALENTS	48
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	238
CASH AND CASH EQUIVALENTS, END OF PERIOD	286

Selected data for Kris Corporationâs comparative balance sheetsfor Year 1 and Year 2 are as follows:

	Year 1		Year 2
Assets
Cash	$	100,000	$	(50,000)
Accounts receivable (net)		50,000		100,000
Inventory		100,000		250,000
Equipment (net)		300,000		350,000
Total assets	$	550,000	$	650,000
Liabilities and Equity
Accounts payable	$	150,000		100,000
Income taxes payable		80,000		30,000
Bonds payable		100,000		80,000
Common stock		100,000		200,000
Retained earnings		120,000		240,000
Total liabilities and Equity	$	550,000	$	650,000

1. The change in the equipment balance would berecorded on the statement of cash flows as:

A) a decrease of $50,000 under investing activities.

B) an increase of $50,000 under investing activities.

C) a decrease of $150,000 under investing activities.

D) an increase of $150,000 under operating activities.

2. The change in the balance of the Bonds Payableaccount would be recorded on the statement of cash flowsas:

A) an increase of $20,000 under financing activities.

B) an increase of $80,000 under investing activities.

C) a decrease of $20,000 under financing activities.

D) a decrease of $80,000 under operating activities.

limebee696

33:390:310 Lecture Notes - Lecture 3: Reserve Requirement, Income Statement

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