Explore BrainMass

Statement of Cash Flows

Statement of cash flows

I am having problems doing practice statement of cash flows problems, I need help answering P18-1A and 3A in excel. (See attached file for full problem description)

Statement of Cash Flows

What is the purpose of the statement of cash flows? What information does it provide? Be sure to explain why statements of cash flows are important when assessing the financial strength of an organization.

Cash Flow Statement

A dollar of cash equals a dollar of cash equals a dollar of cash. In other words, most of us would be happy with a $5 dollar bill, five $1 dollar bills or 20 quarters, correct? Does this same theory hold true for the cash flow statement? Would a company rather have a dollar of cash flow from operations or a dollar from investing

Cash flow statements, direct & indirect methods, income statement

Prepare 2 cash flow statements: direct and indirect methods. (See attached file for full problem description) Company X Debits 31-Dec-05 01-Jan-05 Cash and Cash Equivalents $176,400 $58,000 Accounts Receivable 32,000 26,600 Inventory 21,000 25,400 Prepaid Insurance 5,600 4,000 Lomg-Term Investme

Cash Flow Statements

Why a statement of cash flow is essential for a bank to evaluate company's application for a loan? This company is short on cash.

Preparing a statement of cash flows

When preparing a statement of cash flows, a decrease in prepaid insurance during a period would require which of the following adjustments in determining cash flows from operating activities? Indirect Method Direct Method a. Increase Decrease b. Decrease Increase c. Increase Increase d. Decrease De

The statement of cash flows is a required

True False 1. Under the direct write-off method, no attempt is made to match bad debts expense to sales revenues in the same accounting period. 2. Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends. 3. The statement of cash flows is a required

Solve: Statement of Cash Flows

I am having problems studying. Here is an example of the problems I am studying for my course next week. Edwards, Inc. has prepared the following comparative balance sheets for 2003 and 2004: 2004 2003 ---------- -

Direct and Indirect Methods for Financial Statements

Please see the atached document to review my work to see if I am on base with the assignment. 7. (SCF-Direct and Indirect Methods from Comparative Financial Statements) George Winston Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative statement of

Calculating operating cash flow

A company is considering a new 2 year expansion project which will require an intial fixed asset investment of $6.21 million, the fixed asset will be depreciated straight line to zero over its 2 year tax life after that it will be worthless, this project is estimated to generate $5,520,000 in annual sales, have costs of $2,208

Net Cash Flow from Operating Activities FYE 12/31/05

Info taken from selected 2005 financial statements is as follows: a) A/R increased 45,000 b)COGS $820,000 c)Dividends Declared and Pd $75,000 d)Income Tax Exp $70,000 e)Interest Exp $40,000 f)Investment, Avail-For-Sale decreased $55,000 g)Gain on sale of Equip $10,000 h)Land Increased $315,000 i)Loss on Sale of Machin

A Statement of Cash Flows.

(See attached file for full problem description) --- The income statement of Dreamworks International Co. for the year ended December 31, 2002, reported the following condensed information. Revenue from fees $470,000 Operating expenses 280,000 Income from operations 190,000 Income tax expense 47,000 Net income $143,000

Proper cash flows

I basically understand how to calculate this problem so far, see attachment, however, the last part is as follows: New chips: Selling price= $25 Cost price= $8 Margin $17 =25-8 How would calculate the No of chips? What would be the net cash flow from the sale of new chips? Please be informative with a

Important information about Cash Flow Statement

In the statement of cash flows, an increase in the accounts receivable balance from the beginning of the period to the end of the period would: A. be added to net income because this represents earned revenues that have not been collected. B. be subtracted from net income because this represents earned revenue provided by

Traditional accounting architecture

1. The Financial Accounting Standards Board (FASB) indicated that the traditional accounting information system design actually constrained standard setting in FASB Statement 95, "A Statement of Cash Flows." The Board received 450 comment letters, most from bank lending officers-accounting information users-who favored requirin

Statement of Cash Flows

Given the attached information: Prepare the operating activities section of the statement of cash flows using the direct method. ** See ATTACHED file(s) for complete details **

Statement of cash flows

Given the attached info: Prepare a statement of cash flows in proper form for 2003, using the indirect method. PART VIII - STATEMENT OF CASH FLOWS Presented below is information related to the operations of Tanner Corporation. December 2003 2002

Cash flow and business relationships

I wanted to pose a rather interesting question to garner feedback from the experts. How can you sustain good longer-term relations with business partners (customers and vendors) in the face of the need to improve cash flow and hold down bank borrowing? Thanks for your feedback.

Question on calculating cash flow from operating activities for the coming year

Suppose net income is forecasted to be $1,188 for the coming year, depreciation expense is forecasted to be $1,957, and dividends are expected to be $451. The balances in accounts receivable, inventories, accounts payable, and gross property, plant, and equipment are expected to be $279, $4,889, $2,209, and $26,111, respectively

Calculating external funds needed and closing cash

Please show all work so I can understand similar problems. Thanks 1. Suppose net income for the coming year is forecasted to be $1,634 and dividends are forecasted to be $657. After careful analysis, you determine asset needs for next year are $48,824 and liabilities are expected to be $12,869. Owner's equity of the year

Multiple choice questions on Cash Flow, Goodwill, Premium per Share, Debentures

1. A company bought new equiptment costing $200,000. It paid $150,000 in cash and received a part-exchanged allowance of $50,000 on some old equpitment, which had a book value of $40,000. Is also sold another item of equiptment, with a book value of $20,000, for $15,000. How should these transactions appear in a cash flow statem

Cash Flows

The use of the certainty equivalent method to evaluate cash flows is a variation of ________ the internal rate of return method of analysis, the payback method of analysis, the net present value method of analysis, or the sensitivity method of analysis please advise answer & why - thanks!

Terminal Cash Flow

A corporation is evaluating the relevant cash flow for a capital budgeting decision and must estimate cash flow. The proposed machine will be disposed of at the end of its usable life of five years at an estimated sale price of $2,000. The machine has an original purchase price of $80,000, installation cost of $20,000, and wil