The backbones of business reporting are the financial statements. They are formal records of the financial activities of a business. There are three basic financial statements:(1) Profit & loss account(2) Balance sheet(3) Cash flow statementThe profit & loss account:The profit and loss account (also referred to as the income statement) shows the results of the flow of activity and transactions and is designed to report the profit performance of a business for a specific period of time. The profit
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Agao CASH FLOW STATEMENT OBJECTIVES: To provide information about an entity’s cash receipts and cash payments during a period. To provide information on a cash basis about its operating‚ investing‚ and financing activities. The statement of cash flows therefore reports cash receipts‚ cash payments‚ and net change in cash resulting from operating‚ investing‚ and financing activities of an enterprise during a period‚ in a format that reconciles the beginning and ending cash balances
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6. 7. 7.2 Explain the difference between the flow of funds (sources and uses of funds) statement and the statement of cash flows – and understand the benefits of using each. Define "funds" and identify sources and uses of funds. Create a sources and uses of funds statement‚ make adjustments‚ and analyze the final results. Describe the purpose and content of the statement of cash flows as well as implications that can be drawn from it. Prepare a cash budget from forecasts of sales‚ receipts‚ and
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CHAPTER 12 Statement of Cash Flows Study Objectives 1. Indicate the usefulness of the statement of cash flows. 2. Distinguish among operating‚ investing‚ and financing activities. 3. Explain the impact of the product life cycle on a company’s cash flows. 4. Prepare a statement of cash flows using the indirect method. 5. Use the statement of cash flows to evaluate a company. *6. Prepare a statement of cash flows using the direct method. Summary of Questions by Study Objectives
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income statement‚ balance sheet‚ and cash flow. A comparative analysis will be conducted to that of its top competitors. Financial Health In any organization whether it is a large global corporation or a small business‚ financial management is very important to keep a checks and balance of the organization in order to maintain a stable‚ profitable business. To determine the financial health of a business‚ you must look at three key financial statements: the balance sheet‚ income statement‚ and
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Fund Flow Statements Meaning of Fund Fund Flow Statement is widely used tool in the hands of financial executives for analyzing the financial performance of a concern. Funds keep on moving in a business which itself is based on a going concern concept. In broader sense‚ the term “fund” refers to money values in whatever form it may exits. Meaning of Flow of Fund The term ‘Flow’ means change. Thus flow of fund means change in fund or change in working capital. Flow of fund is said to have taken
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Introduction The cash flow at Warf Computers‚ Inc. is as follows: Operations Net Income $896 Depreciation $191 Deferred Taxes $13 Changes in assets and liabilities Accounts receivables -$37 Inventories -$17 Accounts payable $20 Accrued expenses -$118 Other -$11 Total cash flow from operations $937 Investing Activities Acquisition of fixed assets -$786 Sale of fixes Assets $139 Total cash from investing activities -$647 Financing Activities Retirement of long term debt -$98
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Warf Computers Financial Cash Flow $ Thousands Cash Flow of the Firm Operating Cash Flow $1‚322 Capital Spending $810 Additions to net working capital $170 Total $342 Cash Flow to investors in the firm Debt $81 Equity $261 Total $342 Warf Computers Accounting Cash Flow Statement $ Thousands Operations Net Income $896 Depreciation $191 Deferred Taxes $130 Changes in Taxes and Liabilities Accounts receivable $37 Inventories $17 Accounts
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Bicycles’ Cash Flows Roxette D. Gonzales BSBA III- FM A Darin Cline‚ formerly an internationally renowned professional bicycle racer‚ owns and operates Cline Custom Bicycles—a firm that builds and markets custom bicycles to shops throughout the United States. He has just received his firm’s 2000 income statement‚ balance sheet‚ and statement of retained earnings. Although he is quite pleased to have achieved record earnings of $ 106‚ 000 in 2000‚ Darin is concerned about the firm’s cash flows. Specifically
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East Coast Yachts Statement of Cash Flows Cash flows from operating activities | | Net income | $38‚652‚000.00 | Adjustments: | | Depreciation | $16‚800‚000.00 | Increase in accounts receivables | $-910‚000.00 | Increase in inventories | $-4‚494‚000.00 | Increase in other current assets | $-646‚000.00 | Increase in accounts payable | $128‚800.00 | Decrease in accrued expenses | $-1‚400‚000.00 | Decrease in notes payable | $-3‚600‚000.00 | Cash flows provided by operating activities
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