Cash Flow Statement

October 11, 2012 currency Flow Statement (continued)  administrator Summary 1. 2. 3. 4. 5. 6. propose method verificatory method figure vs. indirect method specie stream from investing activities coin range from financing activities Complete intemperately currency menstruate statement 1. withdraw method Direct method - Converts income statement from accrual basis to hard currency basis - advance by FASB 95 - ancillary information required: reconciliation of play in income to currency provided by operations 1. Direct method cash in flow from operations gold original from customers coin salaried to suppliers and employees pursuance received Interest give Income taxes paying dismisswork cash provided by operations 370,000 (310,000) 10,000 (4,000) (15,000) 51,000 Presents elucidate income on a cash basis (from scratch) 2. confirming method Indirect method - Adjusts net income for items that affected net income but did non affect cash - Supplemental information required: cash paid for income taxes and for interest 2.

Indirect method specie flow from operations dinero earnings envision for depreciation Provision for margin for questionable accounts Deferred income taxes Loss on property, plant, and equipment disposals Changes in operating(a) assets and liabilities: Receivables increase Inventories increase Accounts payable increase Accrued income taxes increase lucre cash provided by operations 40,000 6,000 1,000 1,000 2,000 (2,000) (4,000) 5,000 2,000 51,000 Adjusts net income for items that affected net income but did non affect cash 3. Direct vs. indirect method Cash flow from operations (DIRECT) Cash received from customers Cash paid to suppliers and employees Interest received Interest paid Income taxes paid Net cash provided by operations 370,000 (310,000) 10,000 (4,000) (15,000) 51,000 Cash flow from operations (INDIRECT) Net earnings Provision for depreciation Provision for permissiveness for doubtful accounts Deferred income taxes Loss...If you want to establish a full essay, prayer it on our website: Ordercustompaper.com

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