ADVANCED FINANCIAL ACCOUNTING-ACCESS
ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
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Chapter 10, Problem 10.5E
To determine

Consolidated statement of cash flow:consolidated entities, as with individual companies, must present a statement of cash flow when they issue a complete set of financial statements. A consolidated statement of cash flows is similar to a statement of cash flows prepared for an individual corporate entity and is prepared in same manner. Consolidated statement of cash flow is prepared after consolidated financial statement. Consolidated cash flow statement is prepared form the information in the three consolidated statements, when an indirect approach is used consolidated net income must be adjusted for all items that affect consolidated net income and the cash of consolidated entity effectively.

Cash flows statement is divided in to three parts, cash flows from operating activities, it explains source and uses of cash from ongoing regular business activity. Cash flow from financing activity showing Funds Company generated using finance in the business and, investing activity displays how much money has been used in or generated by making investments during specific time period.

the computation of statement of cash flow for C enterprises unsing indirect method.

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Prepare the statement of cash flows using the indirect method of presenting cash flows from operating activities
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Review the most recent Nike Annual Report, including its Consolidated Statements of Income, Consolidated Balance Sheets, and Consolidated Statements of Cash Flows, as well as any accompanying notes, for the most recent 2-3 years provided.  Identify at least one significant change (increase or decrease) from one year to the next in an income statement line item, balance sheet line item, and statement of cash flows line item.  Then identify the causes of the change in each of these line items.  Discuss the implications of each of these line item changes, and your assessment of the company based on these changes.  Do these changes reflect positively or negatively on the company?  What is your overall assessment of the outlook for the company?

Chapter 10 Solutions

ADVANCED FINANCIAL ACCOUNTING-ACCESS

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