Purchase Solution

Statement of Cash Flows (Indirect Method) for Millco

Not what you're looking for?

Ask Custom Question

1) Prepare statement of cash flows (indirect method) using balance sheet data. Presented below {see attached} are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2004.

2) Write 350-500 words discussing how the different sections of the statement of cash flows assist different sets of users.

3) Also discuss the merits of using the direct method versus the indirect method of preparation

Attachments
Purchase this Solution

Solution Summary

The solution prepares Statement of Cash Flows (Indirect Method) for Millco, Inc, discusses how the different sections of the statement of cash flows assist different sets of users and discusses the merits of using the direct method versus the indirect method of preparation.

Solution Preview

Plese see attached file (under "sol" in excel document) for the complete answers

2) Write 350-500 word paper discussing how the different sections of the Statement of Cash Flows assist different sets of users.
"(Source:http://www.investopedia.com/university/fundamentalanalysis/cashflow.asp)
(Management Accounting by Charles T Horngren)"

The primary Purpose of the Statement of Cash Flows is  to provide information about: cash receipts, cash payments, and the net change in cash resulting from:operating,investing, and financing activities of a company during a period.
The statement of cash flow is extremely important to management, lenders, and tax authorities as well as investors. Unlike the income statement , the cash-flow statement does not take into account ...

Purchase this Solution


Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Introduction to Finance

This quiz test introductory finance topics.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.