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Anybody an accounting major?

G

GoldenGuppy

Diamond Member
And an ace w/ STATEMENT OF CASH FLOWS? I'm at my school's library right now, and I plan on studying all night until my first class tomorrow at 8 AM - test at 3 PM... hopefully somebody here can help give me an idea as to what to look for when doing statement of cashflows and what not.

I'm sorry I can't be any more specific. 🙁

Eh, better get cracking
 
sorry no help from me...

I hear ya on the all nighter thing though, I'm in the middle of mine right now, trying to start/do/finish and english paper thats due at 8am tomorrow(or should i say later today)...

damn, if only i had resisted all those free drinks I got offered....
 
Accounting and Law here.

Cash flow - 3 parts:
Operating
Investing
Financing

Only items that involve cash inflows and outflow. Lemme thing some more.

Windogg
 


<< Accounting and Law here.

Cash flow - 3 parts:
Operating
Investing
Financing

Only items that involve cash inflows and outflow. Lemme thing some more.

Windogg >>



Yep, I know that 😉

I know basically everything except the start- if I can just get the additional info down - like, a firm sells PPE for 500 more than what it paid.

(we gotta take into account A/Depreciation and total depreciation and all that other BS... such a chore...)
 
i feel for you man...i cant remember a single thing from intermediate accounting.

i have a advanced accouting exam this tuesday....CONSOLIDATION...ahhhhhhhhhhhhhh 🙁

if i find my interm. book, i will look it up

good luck
 
Is it true accounting majors have accounting parties on New Year's Day, where they just balance Financial Statements?! :Q
 
Yes that's Assets = LIabilities + Owner's equity - balance statement.

But that's so child's play compared to Cash Flows 🙁
 
ok..here we go.

1. start off my taking the difference b/t balances for all accouns from one year to the next.
2. now the cash flows statement: gonna go wit the problem i have in front of me.

Cash Flows from operating activities:
Net Income XX
increase in A/R (XX) <--------------------subtract from N.I.(basically, you sold
on credit, means u didnt collect any
cash)
decrease in A/P (XX) <--------------------subtract again b/c A/P went doen, so
means you paid your bills, means cash goes out.
increase in Acc. Deprec. XX <--------------------- add back
loss on sale of equipment XX
amort. of goodwill XX
increase from investment (XX)
decrease in inventory XX <-------------add back...inventory went down, means u didnt spend
cash to replace.so you have more cash now
gain on investment (XX)
Cash from operating activities XX <-------------just net everything in left column and add/
subtract from NI

that's the 1st part. GOOD TIP: take a look in your text, there will be all these rules for what gets added to NI and what doesnt....it all depends on the increase/decrease and the nature of the account. (for example: something easy, if A/R decreased during the year, that means that customers actually paid you cash rather than you selling on credit. so you have more cash in your hands now, so you add it back to NI)



let me know how things work out.
 


<< ok..here we go.

1. start off my taking the difference b/t balances for all accouns from one year to the next.
2. now the cash flows statement: gonna go wit the problem i have in front of me.

Cash Flows from operating activities:
Net Income XX
increase in A/R (XX) <--------------------subtract from N.I.(basically, you sold
on credit, means u didnt collect any
cash)
decrease in A/P (XX) <--------------------subtract again b/c A/P went doen, so
means you paid your bills, means cash goes out.
increase in Acc. Deprec. XX <--------------------- add back
loss on sale of equipment XX
amort. of goodwill XX
increase from investment (XX)
decrease in inventory XX <-------------add back...inventory went down, means u didnt spend
cash to replace.so you have more cash now
gain on investment (XX)
Cash from operating activities XX <-------------just net everything in left column and add/
subtract from NI

that's the 1st part. GOOD TIP: take a look in your text, there will be all these rules for what gets added to NI and what doesnt....it all depends on the increase/decrease and the nature of the account. (for example: something easy, if A/R decreased during the year, that means that customers actually paid you cash rather than you selling on credit. so you have more cash in your hands now, so you add it back to NI)



let me know how things work out. >>



OMG, you're the breast - thanks a grip for the notes man... I know that it must have taken plenty of time off your hands to type all that - I'm grateful - thanks lots! Awesome.
 
sorry i cant help more....if i had a scanner, i'd scan the problem and the solution for you which has everything like the "cash from investing activities" and "cash from financing activities" parts
 
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