Bundle: Fundamentals of Financial Management, Concise Edition, Loose-leaf Version, 9th + Aplia, 1 term Printed Access Card
Bundle: Fundamentals of Financial Management, Concise Edition, Loose-leaf Version, 9th + Aplia, 1 term Printed Access Card
9th Edition
ISBN: 9781337089241
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 3, Problem 3DQ
Summary Introduction

To analyze: The changes in cash balance in two years based on the statement of cash flow.

Introduction:

A part of annual financial statements, the statement of cash flow is used to report the cash and changes in cash during the accounting period. It categories the cash flows in three parts that are cash from the operations, cash from financing and cash from the investing activities.

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How to prepare a statement of cash flows ?  To prepare a statment of cash flows for the year 2014                                                                             2014                    2013  Cash                                                            177,000                78,000  Accounts recievable                               180,000.                185,000 Investments                                                52,000             74,000 Equipment                                                     298,000             240,000Accoumulated depreciation-- equipment    (106,000)         (89,000) Current Liabalities                                          134,000                151,000              Common stock                                            160,000                     160,000 Retained Earnings                                  307,000                      177,000   Additional Infomation : Investments were sold at loss (not extraordinary) of 10,000; no…
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