Fin 2 hundred Week one particular Assignment Essay

Fin two hundred Week one particular Assignment

Cash Flow Prep

27) Earnings Preparation


Salary Statement to get the Year Ending December 31, 2008

Cash flows coming from operating activities:

Net income: $160. 000

Adjustments to cash flow from operating activities

Downgrading (re-added) $150, 000

Increase in inventory $20, 000

Decline in already paid out expenses ($20, 000)

Embrace accounts payable $210, 500

Decrease in accumulated expenses $20, 000

Total adjustments $380, 000

Net cash flow coming from operating actions $160, 500

Cash runs from investment activities:

Embrace investments ($10, 000)

Embrace plant and equipment $400, 000

Net cash flow by investing $390, 000

Income from funding activities:

Embrace bonds payable $50, 1000

Preferred stock dividends paid $10, 000

Common share paid $120, 000

Net cash flow via financing actions $180, 500

Net increase in cash flow is definitely $20, 500

28. ) The relationship among net income and net cash flows from operating actions for the company is that, the internet income may be the basic when the company can use is a direct method. The items on the profits statement happen to be adjusted to cash accounting. The net salary shows wherever it starts off and the adjustments are made to transform net income to cash flow by operations.

twenty nine. ) The rose and equipment have been financed in a easy way due to the way the company developed excess money from operating activities that they can in turn utilized for the trading activities in addition to some areas of the financing activities. Because of the way which the company created the excess money, there is a $20, 000 embrace the cash stream balance; this could also be checked against the funds balance.