Acc prepare the statement of cash flows for amy''s fashion

Reference no: EM13816369

Comes right from the income statement.

Depreciation and amortization are subtracted to achieve net income, so to eliminate their non-cash effects on

the income statement, we add them back here.

Gain on sale from the income statement is subtracted here since we actually want it to appear below in the "investing" section instead.

The following rules are applied to changes in the current asset and current liability accounts:

ADD: Decreases in Current Assets

SUBTRACT: Increases in Current Assets

ADD: Increases in Current Liabilities

SUBTRACT: Decreases in Current Liabilities

Net income + Depreciation + Amortization - Gains + Decreases in CA and Increases in CL - Increases in CA and Decreases in CL = Net Cash Flows from Operating Activities.

Investments are calculated by finding the change amount in the investments account then adding the gain on investments from the income statement to find the total amount of cash received from the sale of investments.

Land is sold at cost, so that’s the amount of cash received. This information is in the instructions. The middle cell across from land is for the subtotal of the investments and land.

Cash paid for the construction of the building is also given in the instructions.

Cash from investments + Cash from sale of land - cash paid for construction of building = Net Cash Flows from Investing Activities

Cash received from mortgage note payable is given in the instructions.

Cash paid for dividends is calculated like this: Dividends Declared (given in instructions) - Increase in Dividends Payable account.

Cash received from Mortgage note payable less cash paid for dividends = Net Cash Flow Used for Financing Activities

Increase in cash is calculated as Net CF from Op + Net CF from Investing (or - if its negative) + Net CF from Financing (or - if its negative).

Cash at beginning of the year comes from the balance sheet information. Year 20WW is beginning of year, 20XX is end of year.

Comes from balance as of 20XX. Should also tie out as "Increase in cash + Beginning Cash Balance".

Common stock was issued in exchange for settling the bond liability. Remember, when stock is sold "at 40"

you will multiply the number of shares sold by the sell price to get the dollar amount settled.

Example: If I sell 100 shares at 10, the total amount of cash received is 1,000. (100 x 10).

Attachment:- ACC MODULE 1.xlsx

Attachment:- ACC MODULE 2.xlsx

Reference no: EM13816369

Questions Cloud

Assignment on fair or equal : Fair or Equal

What was behind apples decision : What was behind Apple's decision? Do you agree with it - despite the fact that only a small portion of the cost of an iPhone was labor expense.

Disadvantages of jit and lean production : What are some advantages and disadvantages of JIT and lean production. Why do you think many firms are experiencing an increase in JIT and lean production

What are the variable and fixed costs : Explain what the quote, "Too many cooks spoil the pot" has to do with the law of diminishing marginal returns.

Acc prepare the statement of cash flows for amy''s fashion : View the attached files and answer the questions.

Workshop for hospital staff on protecting patient privacy : You are responsible to advertise a workshop for all hospital staff on protecting patient privacy.

Write essay that address social implications of attitude : Write an essay of 1,000-1,250 words in which you address the social implications of attitude, legislation, and litigation on the lives of students with disabilities. Include the following components in your essay.

How do s&op and master planning differ : How do S&OP and master planning differ. What are the advantages of other computer software operations and supply chain management software such as MRP, MRP2, and DRP

What type of claim should the eeoc file : Joe contacts the EEOC to discuss filing a claim against People First Bank. What type of claim should the EEOC file? What law may be applied to this situation?

User Account

All Pages