This addresses the Statement of Cash Flows for Carpino Co.
Not what you're looking for?
Ron Nord and Lisa Smith are examining the following statement of cash flows for Carpino Company for the year ended January 31, 2007.
Ron claims that Carpino's statement of cash flows is an excellent portrayal of a superb first year with cash increasing $105,000. Lisa replies that it was not a superb first year. Rather, she says, the year was an operating failure, that the statement is presented incorrectly, and that $105,000 is not the actual increase in cash. The cash balance at the beginning of the year was $140,000.
Write a 1-page memo to shareholders explaining what the organization had a performing or underperforming first year.
Purchase this Solution
Solution Summary
The solution discusses the exercise by providing a sample memo for the Carpino Company Statement of Cash Flows analysis and determines if the company really did have a good year or if they had a year with poor performance.
Solution Preview
Sample memo for practice problem, to be used as a sample memo/guide/reference only:
To: Management
From: Accounting Department
It is apparent that the organization had an under-performing first year of operations. This can be identified by the net loss of $30,000 sustained this year. The statement of cash flows as prepared by Ron and Lisa was not prepared correctly, so an adequate analysis of the company's cash position cannot be ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
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.
Introduction to Finance
This quiz test introductory finance topics.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.