BU121 Study Guide - Midterm Guide: Cash Flow Statement, Cash Flow, Accounts Payable
Document Summary
Look @ accounts receivable (all of the sales that you made that are on credit). It shows as profit to the company but you don"t have the cash yet. Look @ accounts payable (all of the expenses that you haven"t paid off yet, so it can show as. Profitable" but wont be when you pay them off) *in april there was 10k of goods sold w. 10% being paid in cash, 40% on credit due in the next mths, and. *in april you purchased a piece of equip for k on credit. 10% due the month of purchase, 60% due the following mth and remaining due the next mth after that. It"ll depreciate so there will be no change in the cash flow statement its not a cash item. Operating activities: start with net income, add back depreciation/amortization. Financing activities: loans, stock, cash dividends. Determine the following calculations and their impact on your investors:
