See company financial data below: Income Statement (values in $) 2007 2008 Sales 4,018 4,312 COGS 1,710 1,843 Depreciation 577 678 EBIT 1,731 1,791 Interest 269 269 EBT 1,462 1,522 Taxes 497 517 NI 965 1,005 Dividends 338 352 RE 627 653 Balance Sheet (Values in $) 2007 2008 Cash 2,107 2,155 AR 2,780 3,142 Inventory 4,959 4,086 Total CA 9,855 9,383 NFA 17,669 19,091 Total assets 27,524 28,474 AP 2,213 2,146 Short term notes 407 382 Total CL 2,620 2,528 LTD 7,056 8,232 Equity 17,848 17,714 Total D & E 27,524 28,474 What is the firm's 2008 cash flow from financing?
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
See company financial data below:
Income Statement
(values in $) 2007 2008
Sales 4,018 4,312
COGS 1,710 1,843
EBIT 1,731 1,791
Interest 269 269
EBT 1,462 1,522
Taxes 497 517
NI 965 1,005
Dividends 338 352
RE 627 653
(Values in $) 2007 2008
Cash 2,107 2,155
Inventory 4,959 4,086
Total CA 9,855 9,383
NFA 17,669 19,091
Total assets 27,524 28,474
AP 2,213 2,146
Short term notes 407 382
Total CL 2,620 2,528
LTD 7,056 8,232
Equity 17,848 17,714
Total D & E 27,524 28,474
What is the firm's 2008
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