The document discusses the statement of cash flows and how to prepare one using the indirect method. It provides the following key points:
1. The statement of cash flows reports a company's cash inflows and outflows from operating, investing, and financing activities. It shows a company's ability to generate cash.
2. Under the indirect method, net income is adjusted for non-cash revenues/expenses to calculate cash flows from operating activities. Expenses like depreciation are added back and gains/losses from asset sales are removed.
3. Changes in current operating assets and liabilities are also considered, with increases in assets subtracted and increases in liabilities added to net income.
The document describes the flow of accounting information from transactions through the accounting cycle and financial statements. It discusses how the unadjusted trial balance is adjusted, then used to prepare the income statement, retained earnings statement, and balance sheet. Closing entries are made to zero out temporary accounts before preparing the post-closing trial balance.
The document discusses internal controls over cash, including controls over cash receipts and payments. It describes how businesses use bank accounts to help control cash. A key control is the bank reconciliation, which is an analysis of the differences between the bank statement balance and the company's cash records. It involves adjusting the bank balance for items like deposits in transit and outstanding checks to calculate the adjusted cash balance. Preparing regular bank reconciliations helps ensure accurate recording of cash transactions.
The document discusses the adjusting process in accounting. It describes how adjusting entries are needed at the end of an accounting period to update accounts for expenses that have been incurred but not recorded, revenues that have been earned but not recorded, and other items like prepaid expenses and unearned revenues. It provides examples of different types of adjusting entries needed for accounts like prepaid expenses, unearned revenues, accrued revenues, accrued expenses, and depreciation expense. The overall purpose of the adjusting process and adjusting entries is to ensure revenues and expenses are reported in the proper accounting period in accordance with accrual basis accounting.
This document discusses accounting for fixed assets. It defines fixed assets as long-term tangible assets used in operations, such as equipment, buildings, and land improvements. It explains how to classify costs of acquiring fixed assets as capital expenditures or revenue expenditures. It also describes various depreciation methods including straight-line, units-of-production, and double-declining balance and compares their application. The document provides examples to illustrate computing depreciation expense under each method.
The document thanks several people who provided guidance and support in completing an assignment. It expresses gratitude to the course instructor Ms. Richa Bhatia for guidance throughout numerous consultations. Thanks are also given to Professor Anuradha Goswami for introducing the methodology and passion for underlying structures. The Bhopal School of Social Sciences is thanked for allowing copyrighted pictures to be included. Classmates and team members are thanked for valuable comments and suggestions that helped improve the assignment.
1. The document discusses stockholders' equity, the different types of stock (common and preferred), and accounting entries related to issuing stock, cash dividends, and stock dividends.
2. It describes key characteristics of corporations including separate legal status, transferable ownership shares, and limited liability for stockholders. Common stockholders have rights to voting and distributions, while preferred stockholders have dividend preference.
3. The document provides examples of accounting entries for issuing stock at par value and at a premium or discount to par, and for declaring and paying cash and stock dividends.
1. The document discusses inventory control and costing methods. Two primary objectives of inventory control are safeguarding inventory and reporting inventory in financial statements.
2. Three inventory cost flow assumptions - FIFO, LIFO, and weighted average - are described. These assumptions impact income statements and balance sheets differently.
3. Methods for determining inventory costs under perpetual and periodic inventory systems using FIFO, LIFO, and weighted average are presented and illustrated with examples.
The document describes the flow of accounting information from transactions through the accounting cycle and financial statements. It discusses how the unadjusted trial balance is adjusted, then used to prepare the income statement, retained earnings statement, and balance sheet. Closing entries are made to zero out temporary accounts before preparing the post-closing trial balance.
The document discusses internal controls over cash, including controls over cash receipts and payments. It describes how businesses use bank accounts to help control cash. A key control is the bank reconciliation, which is an analysis of the differences between the bank statement balance and the company's cash records. It involves adjusting the bank balance for items like deposits in transit and outstanding checks to calculate the adjusted cash balance. Preparing regular bank reconciliations helps ensure accurate recording of cash transactions.
The document discusses the adjusting process in accounting. It describes how adjusting entries are needed at the end of an accounting period to update accounts for expenses that have been incurred but not recorded, revenues that have been earned but not recorded, and other items like prepaid expenses and unearned revenues. It provides examples of different types of adjusting entries needed for accounts like prepaid expenses, unearned revenues, accrued revenues, accrued expenses, and depreciation expense. The overall purpose of the adjusting process and adjusting entries is to ensure revenues and expenses are reported in the proper accounting period in accordance with accrual basis accounting.
This document discusses accounting for fixed assets. It defines fixed assets as long-term tangible assets used in operations, such as equipment, buildings, and land improvements. It explains how to classify costs of acquiring fixed assets as capital expenditures or revenue expenditures. It also describes various depreciation methods including straight-line, units-of-production, and double-declining balance and compares their application. The document provides examples to illustrate computing depreciation expense under each method.
The document thanks several people who provided guidance and support in completing an assignment. It expresses gratitude to the course instructor Ms. Richa Bhatia for guidance throughout numerous consultations. Thanks are also given to Professor Anuradha Goswami for introducing the methodology and passion for underlying structures. The Bhopal School of Social Sciences is thanked for allowing copyrighted pictures to be included. Classmates and team members are thanked for valuable comments and suggestions that helped improve the assignment.
1. The document discusses stockholders' equity, the different types of stock (common and preferred), and accounting entries related to issuing stock, cash dividends, and stock dividends.
2. It describes key characteristics of corporations including separate legal status, transferable ownership shares, and limited liability for stockholders. Common stockholders have rights to voting and distributions, while preferred stockholders have dividend preference.
3. The document provides examples of accounting entries for issuing stock at par value and at a premium or discount to par, and for declaring and paying cash and stock dividends.
1. The document discusses inventory control and costing methods. Two primary objectives of inventory control are safeguarding inventory and reporting inventory in financial statements.
2. Three inventory cost flow assumptions - FIFO, LIFO, and weighted average - are described. These assumptions impact income statements and balance sheets differently.
3. Methods for determining inventory costs under perpetual and periodic inventory systems using FIFO, LIFO, and weighted average are presented and illustrated with examples.
The document discusses different types of securities markets including primary markets for initial public offerings, secondary markets for trading existing securities, and organized exchanges. It describes the initial public offering process and roles of investment banks in underwriting new issues. Different market structures are examined, including the New York Stock Exchange, Nasdaq, and over-the-counter markets. Basic securities transactions such as long purchases, margin trading, and short selling are also outlined.
1) The chapter discusses portfolio risk and return, and how diversification can reduce risk without lowering expected returns. It also covers calculating expected portfolio returns and standard deviation.
2) The Capital Asset Pricing Model (CAPM) measures systematic risk using beta coefficients. Systematic risk cannot be diversified away, whereas unsystematic risk can be through diversification.
3) CAPM predicts that investors will require a higher expected return for investments with higher betas or systematic risk. This relationship is depicted by the security market line.
Revenue management focuses on setting prices for products to maximize profit. It involves understanding customer demand and manipulating timing, targeting, and inventory allocation across market segments. Key aspects of revenue management include forecasting demand, using peak and off-peak pricing, and allocating limited inventory among price levels. Revenue management is used widely in industries like airlines, hotels, rental cars, and media to optimize revenue from perishable assets by adjusting prices based on demand, time until use, and unsold inventory.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
This document discusses completing the accounting cycle. It describes the flow of accounting information from the unadjusted trial balance into the adjusted trial balance and financial statements. The document explains how to prepare financial statements, including the income statement, statement of owner's equity, and balance sheet, directly from the adjusted account balances on the end-of-period spreadsheet. It also covers preparing closing entries and classifying the balance sheet with current assets, fixed assets, current liabilities, and long-term liabilities sections.
This document discusses inventory costing methods. It describes three inventory cost flow assumptions: specific identification, first-in first-out (FIFO), and last-in first-out (LIFO). These assumptions impact the income statement and balance sheet by determining the cost of goods sold and ending inventory valuation. The document provides examples of calculating inventory costs under the perpetual inventory system using FIFO, LIFO, and weighted average methods. It also discusses calculating inventory costs under the periodic inventory system using these methods.
The document discusses the demutualization of stock exchanges, which is the process of converting nonprofit member-owned exchanges into for-profit investor-owned corporations. Reasons for demutualization include globalization and information technology. Benefits include rationalized governance, investor participation, and access to capital investment. Challenges include potential conflicts of interest between ownership and management and developing a new regulatory framework. The demutualization process involves changing the ownership structure and legal framework. Many major stock exchanges have demutualized, including those in Sweden, Finland, Denmark, Netherlands, Australia, Canada, UK and Hong Kong. The document also provides details on Pakistan's demutualization process and recommendations.
This document provides an overview of common stock and differences between debt and equity financing. It discusses key differences such as creditors having legal right to repayment while investors only have expectation, equityholders having last claim on assets in bankruptcy. Common stockholders are residual owners who receive dividends and capital gains. Preemptive rights protect common stockholders from dilution from new share issuances. Voting rights, dividends and international stock issues are also summarized.
Supply Chain Management, Sourcing Pricing and Procurement Process ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
The document discusses supply chain risk management and minimizing risk exposure. It outlines various risks in the supply chain from external factors like the environment and demand as well as internal factors like processes and governance. It emphasizes the need for a risk framework that includes strategy, execution, and continuous improvement. Key aspects of risk management include risk planning, managing suppliers and inventory, and having the right competencies and performance metrics.
The document outlines accounting concepts including accounts, the chart of accounts, journal entries, and posting journal entries to accounts. It provides examples of various business transactions and their impact on the accounting equation. Learning objectives are described to understand accounts and the double-entry accounting system, as well as journalizing, posting transactions, and using horizontal analysis to evaluate performance.
The document discusses key accounting concepts like journal entries, T-accounts, debits and credits, and the double-entry accounting system. It provides examples of transactions to illustrate how the accounting equation is impacted and how to journalize entries. Specifically, it shows a transaction where an owner invested cash in a business, the purchase of land, a purchase on account, and cash received from customers. The goal is to teach how to record business transactions using debits, credits and journal entries.
The document discusses the adjusting process in accounting. It explains that under the accrual basis of accounting, some account balances need to be updated or "adjusted" at the end of an accounting period to properly reflect revenues and expenses in the appropriate periods. This involves analyzing accounts such as prepaid expenses, unearned revenues, accrued revenues, and accrued expenses to determine the proper adjusting journal entries. The adjusting entries are recorded, an adjusted trial balance is prepared, and financial statements can then be prepared using the adjusted account balances. Vertical analysis is also introduced as a technique to evaluate a company's performance and financial condition by comparing individual financial statement line items to relevant totals.
This document discusses accounting for receivables. It covers the common classes of receivables such as accounts receivable and notes receivable. It describes the direct write-off and allowance methods for accounting for uncollectible receivables. The direct write-off method records bad debt expense when an account is written off as uncollectible, while the allowance method estimates bad debt expense at the end of each period. The document also discusses estimating uncollectible accounts using the percentage of sales and aging of receivables methods.
The document discusses the statement of cash flows, which reports a company's cash inflows and outflows over a period of time. It provides information about a company's ability to generate cash from operations, maintain capacity, meet obligations, and pay dividends. The statement of cash flows classifies cash flows into three categories: operating, investing, and financing activities. It can be prepared using either the direct or indirect method. The indirect method reconciles net income to net cash flow from operating activities by adjusting for non-cash revenues and expenses.
The document describes the flow of accounting information from transactions through the accounting cycle and financial statements. It discusses how the unadjusted trial balance is adjusted, then used to prepare the adjusted trial balance, income statement, retained earnings statement, and balance sheet. Closing entries are made to zero out temporary accounts before preparing the post-closing trial balance.
1) Current liabilities include accounts payable, the current portion of long-term debt due within one year, and short-term notes payable.
2) Payroll liabilities include wages and salaries owed to employees, as well as payroll tax liabilities such as Social Security, Medicare, unemployment taxes that are withheld from employee paychecks.
3) Payroll accounting systems use a payroll register to record employee earnings and deductions, employee earnings records to track individual pay, and journal entries to record payroll expenses and related tax liabilities.
1. Accounting provides financial information about a business to internal and external users through managerial and financial accounting.
2. Managerial accounting provides information to internal users to help manage the business, while financial accounting provides external users with general purpose financial statements.
3. Financial statements like the income statement, balance sheet, statement of owner's equity, and statement of cash flows are prepared using generally accepted accounting principles to communicate key financial information.
Accounting in Business - Introduction to Beginnerssaerah8899
This document outlines key concepts in accounting including:
1. It defines a business as an organization that assembles resources to provide goods/services and aims to earn a profit.
2. Accounting provides internal and external users with financial information about a business's economic activities and condition.
3. Accountants must follow generally accepted accounting principles (GAAP) and act ethically to provide useful information to users.
4. Key concepts in accounting include recording transactions at cost, using objective evidence, and expressing amounts in monetary units.
Obje
ctive
The document discusses accounting principles and concepts. It defines a business and explains the role of accounting in providing financial information to internal and external users. Accounting principles such as GAAP, the business entity concept, and the accounting equation are introduced. Transactions are presented that illustrate how the elements of the accounting equation (assets, liabilities, and equity) change as a result.
Desc
ribe
and
inter
the f
relate
inan
cial
.
5
state
men
ts o
fa
corp
orat
ion
and
expl
ain
how
they
c. 2014 Cengage Learning. All
Obje
ctive
The document discusses accounting principles and concepts. It defines a business and the role of accounting in providing financial information to internal and external users. Accounting principles such as GAAP, the business entity concept, and forms of business organization are summarized. The accounting equation is defined, showing that assets must equal liabilities plus owner's equity. Business transactions are provided as examples to illustrate how the elements of the accounting equation are affected.
A cash flow statement helps investors to understand the operations of a company and the inflow outflow of cash. Here you will learn the how to use and analyse the cash flow statements.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
The document discusses different types of securities markets including primary markets for initial public offerings, secondary markets for trading existing securities, and organized exchanges. It describes the initial public offering process and roles of investment banks in underwriting new issues. Different market structures are examined, including the New York Stock Exchange, Nasdaq, and over-the-counter markets. Basic securities transactions such as long purchases, margin trading, and short selling are also outlined.
1) The chapter discusses portfolio risk and return, and how diversification can reduce risk without lowering expected returns. It also covers calculating expected portfolio returns and standard deviation.
2) The Capital Asset Pricing Model (CAPM) measures systematic risk using beta coefficients. Systematic risk cannot be diversified away, whereas unsystematic risk can be through diversification.
3) CAPM predicts that investors will require a higher expected return for investments with higher betas or systematic risk. This relationship is depicted by the security market line.
Revenue management focuses on setting prices for products to maximize profit. It involves understanding customer demand and manipulating timing, targeting, and inventory allocation across market segments. Key aspects of revenue management include forecasting demand, using peak and off-peak pricing, and allocating limited inventory among price levels. Revenue management is used widely in industries like airlines, hotels, rental cars, and media to optimize revenue from perishable assets by adjusting prices based on demand, time until use, and unsold inventory.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
This document discusses completing the accounting cycle. It describes the flow of accounting information from the unadjusted trial balance into the adjusted trial balance and financial statements. The document explains how to prepare financial statements, including the income statement, statement of owner's equity, and balance sheet, directly from the adjusted account balances on the end-of-period spreadsheet. It also covers preparing closing entries and classifying the balance sheet with current assets, fixed assets, current liabilities, and long-term liabilities sections.
This document discusses inventory costing methods. It describes three inventory cost flow assumptions: specific identification, first-in first-out (FIFO), and last-in first-out (LIFO). These assumptions impact the income statement and balance sheet by determining the cost of goods sold and ending inventory valuation. The document provides examples of calculating inventory costs under the perpetual inventory system using FIFO, LIFO, and weighted average methods. It also discusses calculating inventory costs under the periodic inventory system using these methods.
The document discusses the demutualization of stock exchanges, which is the process of converting nonprofit member-owned exchanges into for-profit investor-owned corporations. Reasons for demutualization include globalization and information technology. Benefits include rationalized governance, investor participation, and access to capital investment. Challenges include potential conflicts of interest between ownership and management and developing a new regulatory framework. The demutualization process involves changing the ownership structure and legal framework. Many major stock exchanges have demutualized, including those in Sweden, Finland, Denmark, Netherlands, Australia, Canada, UK and Hong Kong. The document also provides details on Pakistan's demutualization process and recommendations.
This document provides an overview of common stock and differences between debt and equity financing. It discusses key differences such as creditors having legal right to repayment while investors only have expectation, equityholders having last claim on assets in bankruptcy. Common stockholders are residual owners who receive dividends and capital gains. Preemptive rights protect common stockholders from dilution from new share issuances. Voting rights, dividends and international stock issues are also summarized.
Supply Chain Management, Sourcing Pricing and Procurement Process ,
Presentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings
The document discusses supply chain risk management and minimizing risk exposure. It outlines various risks in the supply chain from external factors like the environment and demand as well as internal factors like processes and governance. It emphasizes the need for a risk framework that includes strategy, execution, and continuous improvement. Key aspects of risk management include risk planning, managing suppliers and inventory, and having the right competencies and performance metrics.
The document outlines accounting concepts including accounts, the chart of accounts, journal entries, and posting journal entries to accounts. It provides examples of various business transactions and their impact on the accounting equation. Learning objectives are described to understand accounts and the double-entry accounting system, as well as journalizing, posting transactions, and using horizontal analysis to evaluate performance.
The document discusses key accounting concepts like journal entries, T-accounts, debits and credits, and the double-entry accounting system. It provides examples of transactions to illustrate how the accounting equation is impacted and how to journalize entries. Specifically, it shows a transaction where an owner invested cash in a business, the purchase of land, a purchase on account, and cash received from customers. The goal is to teach how to record business transactions using debits, credits and journal entries.
The document discusses the adjusting process in accounting. It explains that under the accrual basis of accounting, some account balances need to be updated or "adjusted" at the end of an accounting period to properly reflect revenues and expenses in the appropriate periods. This involves analyzing accounts such as prepaid expenses, unearned revenues, accrued revenues, and accrued expenses to determine the proper adjusting journal entries. The adjusting entries are recorded, an adjusted trial balance is prepared, and financial statements can then be prepared using the adjusted account balances. Vertical analysis is also introduced as a technique to evaluate a company's performance and financial condition by comparing individual financial statement line items to relevant totals.
This document discusses accounting for receivables. It covers the common classes of receivables such as accounts receivable and notes receivable. It describes the direct write-off and allowance methods for accounting for uncollectible receivables. The direct write-off method records bad debt expense when an account is written off as uncollectible, while the allowance method estimates bad debt expense at the end of each period. The document also discusses estimating uncollectible accounts using the percentage of sales and aging of receivables methods.
The document discusses the statement of cash flows, which reports a company's cash inflows and outflows over a period of time. It provides information about a company's ability to generate cash from operations, maintain capacity, meet obligations, and pay dividends. The statement of cash flows classifies cash flows into three categories: operating, investing, and financing activities. It can be prepared using either the direct or indirect method. The indirect method reconciles net income to net cash flow from operating activities by adjusting for non-cash revenues and expenses.
The document describes the flow of accounting information from transactions through the accounting cycle and financial statements. It discusses how the unadjusted trial balance is adjusted, then used to prepare the adjusted trial balance, income statement, retained earnings statement, and balance sheet. Closing entries are made to zero out temporary accounts before preparing the post-closing trial balance.
1) Current liabilities include accounts payable, the current portion of long-term debt due within one year, and short-term notes payable.
2) Payroll liabilities include wages and salaries owed to employees, as well as payroll tax liabilities such as Social Security, Medicare, unemployment taxes that are withheld from employee paychecks.
3) Payroll accounting systems use a payroll register to record employee earnings and deductions, employee earnings records to track individual pay, and journal entries to record payroll expenses and related tax liabilities.
1. Accounting provides financial information about a business to internal and external users through managerial and financial accounting.
2. Managerial accounting provides information to internal users to help manage the business, while financial accounting provides external users with general purpose financial statements.
3. Financial statements like the income statement, balance sheet, statement of owner's equity, and statement of cash flows are prepared using generally accepted accounting principles to communicate key financial information.
Accounting in Business - Introduction to Beginnerssaerah8899
This document outlines key concepts in accounting including:
1. It defines a business as an organization that assembles resources to provide goods/services and aims to earn a profit.
2. Accounting provides internal and external users with financial information about a business's economic activities and condition.
3. Accountants must follow generally accepted accounting principles (GAAP) and act ethically to provide useful information to users.
4. Key concepts in accounting include recording transactions at cost, using objective evidence, and expressing amounts in monetary units.
Obje
ctive
The document discusses accounting principles and concepts. It defines a business and explains the role of accounting in providing financial information to internal and external users. Accounting principles such as GAAP, the business entity concept, and the accounting equation are introduced. Transactions are presented that illustrate how the elements of the accounting equation (assets, liabilities, and equity) change as a result.
Desc
ribe
and
inter
the f
relate
inan
cial
.
5
state
men
ts o
fa
corp
orat
ion
and
expl
ain
how
they
c. 2014 Cengage Learning. All
Obje
ctive
The document discusses accounting principles and concepts. It defines a business and the role of accounting in providing financial information to internal and external users. Accounting principles such as GAAP, the business entity concept, and forms of business organization are summarized. The accounting equation is defined, showing that assets must equal liabilities plus owner's equity. Business transactions are provided as examples to illustrate how the elements of the accounting equation are affected.
A cash flow statement helps investors to understand the operations of a company and the inflow outflow of cash. Here you will learn the how to use and analyse the cash flow statements.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
The document discusses accounting for merchandising businesses. It describes how merchandising businesses recognize revenue from sales and the cost of goods sold, which results in gross profit. It then explains how various merchandise transactions are recorded, including purchases, sales, returns, and discounts. Specific examples are provided to illustrate accounting entries for these different types of transactions. The financial statements of a merchandising business are discussed, along with key accounting concepts like perpetual inventory.
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SlideshareFaccounting
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Small Business Management Chapter 11 PowerPointLeahBusby1
This document summarizes key points about financial forecasting. It discusses how to develop pro forma financial statements to project a firm's profits, assets, financing needs, and cash flows. Specific techniques are covered, like forecasting profitability using an income statement, determining asset requirements as a percentage of sales, and calculating financing needs based on assets and debt ratios. Worked examples are provided to illustrate how to apply these techniques when developing pro forma statements for a sample company. The goal of financial forecasting is accurate planning to ensure a firm has adequate resources and manages growth effectively.
The document contains sample exercises and answers related to financial accounting concepts like calculating net income, dividends, retained earnings, and cash flows. For one exercise, a company's net income is calculated to be $71.6 million based on its ending retained earnings, beginning retained earnings, and dividends paid during the year.
This slides tackles about the Financial statement of the organisation and the needs to analysing it. It is very important especially that the company needs to make a sound judgment and decision to the operation of the company.
This document discusses evaluating financial performance through ratio analysis. It introduces common financial ratios used to analyze liquidity, asset management, financial leverage, profitability, market performance, and dividend policy. These ratios are calculated from key financial statements including the balance sheet, income statement, and statement of cash flows. The document cautions that ratios must be interpreted carefully and provides ways firms may attempt to manage earnings through accounting choices to distort financial analysis.
This document discusses key financial reporting topics including the main financial statements (income statement, balance sheet, statement of cash flows and statement of stockholders' equity), notes to the financial statements, forms of business entities, the accounting cycle, and the auditor's report. It provides an overview of the components of the accounting system including transactions, adjustments, general ledger accounts, and how the financial statements are prepared from the general ledger. It also briefly discusses the efficient market hypothesis and ethics.
This document provides an overview of Chapter 4 from the textbook "Accounting Information Systems, 8e" by James A. Hall. The chapter discusses the revenue cycle, including the conceptual revenue cycle processes of sales order processing, sales returns, and cash receipts. It then describes the physical revenue cycle for basic and advanced technology systems. For basic systems, the revenue cycle processes are described step-by-step and controls are outlined. For advanced systems, integrated processes and additional IT controls are discussed.
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
Gender and Mental Health - Counselling and Family Therapy Applications and In...PsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
2. Learning Objectives
1. Describe the cash flow activities reported in
the statement of cash flows.
2. Prepare a statement of cash flows, using the
indirect method.
3. Prepare a statement of cash flows, using the
direct method.
4. Describe and illustrate the use of free cash
flow in evaluating a company’s cash flow.
3. Lear
ning
Obje
ctive
Desc
repo ribe the
ca
rt
ed in
s h f lo
t he s
w
tatem activiti
es
e nt o
f c as
h
flows
.
1
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
4. Reporting Cash Flows
o The statement of cash flows reports a firm’s
major cash inflows and outflows for a period. It
provides useful information about a company’s
ability to do the following:
Generate cash from operations
Maintain and expand its operating capacity
Meet its financial obligations
Pay dividends
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
5. Reporting Cash Flows
o The statement of cash flows reports cash flows
from three types of activities:
Cash flows from operating activities are cash flows
from transactions that affect net income.
Cash flows from investing activities are cash flows
from transactions that affect investments in the
noncurrent assets of the company.
Cash flows from financing activities are cash flows
from transactions that affect the equity and debt of
the company.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
7. Cash Flows from Operating Activities
o The direct method reports operating cash
inflows (receipts) and cash outflows
(payments) as follows:
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
8. Cash Flows from Operating Activities
o The primary operating cash outflows are cash
payments for merchandise, operating
expenses, interest, and income tax payments.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
9. Reporting Cash Flows
o The indirect method reports the operating
cash flows by beginning with net income and
adjusting it for revenues and expenses that do
not involve the receipt or payment of cash as
follows:
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
10. Reporting Cash Flows
o The primary advantage of the indirect method
is that it reconciles the differences between net
income and net cash flows from operations.
Also, the indirect method is less costly to use
than the direct method.
Over 99% of companies
Over 99% of companies
use the indirect method.
use the indirect method.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
11. Reporting Cash Flows
o Whether the direct or indirect method is used,
the amount of net cash flow from operating
activities will be the same. This is illustrated in
Exhibit 2 in the next slide.
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13. Cash Flows from Investing Activities
o Cash inflows from investing activities normally
arise from selling fixed assets, investments,
and intangible assets.
o Cash outflows from investing activities
normally include payments to acquire fixed
assets, investments, and intangible assets.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
14. Cash Flows from Financing Activities
o Cash inflows from financing activities normally
arise from issuing long-term debt or equity
securities.
o Cash outflows from financing activities
normally include paying cash dividends,
repaying long-term debt, and acquiring
treasury stock.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
15. Noncash Investing and Financing Activities
o Noncash investing and financing activities are
transactions that do not directly affect cash. The
effect of such transactions is recorded in a
separate schedule that appears at the bottom
of the statement of cash flows.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
16. No Cash Flow Per Share
o Cash flow per share should not be reported on
a company’s financial statements for the
following reasons:
Users may misinterpret cash flow per share as the
per-share amount available for dividends.
Users may misinterpret cash flow per share as
equivalent to earnings per share.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
17. Lear
ning
Obje
Prep
ctive
are a
state
m
ent o
using
f cas
the i
h f lo
ndire
ws,
ct m
et ho
d.
2
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
18. The Indirect Method
o The indirect method of reporting cash flows
from operating activities uses the logic that a
change in any balance sheet account
(including cash) can be analyzed in terms of
changes in other balance sheet accounts.
o Any change in the cash account can be
determined by analyzing changes in liability,
stockholders’ equity, and noncash asset
accounts.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
21. Retained Earnings
o A good starting point for determining the cash
flows from operating activities is to analyze the
retained earnings account.
The retained earnings account for Rundell Inc.
is shown below.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
22. Retained Earnings
o The retained earnings account for 2014
indicates that the $80,000 ($108,000 – $28,000)
change resulted from net income and cash
dividends. The net income of $108,000 is the
first amount reported in the Cash Flows from
Operating Activities section.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
23. Adjustments to Net Income
Cash flows from operating activities:
Net income
$108,000
Adjustments to reconcile net income
cash flow from operating activities:
to net
This phrase beginning with
“Adjustments to…” is added to
indicate that accrual basis net
income is being adjusted to arrive
at cash flows from operations.
Rundell Inc.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
24.
25. Step 1
o Expenses that do not affect cash are added.
Such expenses decrease net income, but do
not involve cash payments and, thus, are added
to net income. Examples include depreciation
of fixed assets and amortization of intangible
assets.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
26.
27. Step 2
o Losses and gains on disposal of assets are
added or deducted. The disposal (sale) of
assets is an investing activity, rather than an
operating activity. Losses on disposal of assets
are added back to net income. Gains on
disposal of assets are deducted from net
income.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
28.
29. Step 3
o
Changes in current operating assets and
liabilities are added or deducted as follows:
Increases in noncash current operating assets are
deducted.
Decreases in noncash current operating assets are
added.
Increases in current operating liabilities are
added.
Decreases in current operating liabilities are
deducted.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
35. ADJUSTMENTS
TO NET INCOME
STEP 2. Deduct the gain on the sale of land of $12,000. The
proceeds, which include the gain, are reported in the
Investing section of the statement of cash flows. Thus,
the gain of $12,000 is deducted from net income in
determining cash flows from operating activities.
Rundell Inc.
37. Step 3: Select the current operating assets and liabilities that
impact cash flows and determine their increases and
decreases.
38. Adjustments to Net Income
o Accounts receivable (net): The $9,000 increase
is deducted from net income. This is because
the $9,000 increase in accounts receivable
indicates that sales on account were $9,000
more than the cash received from customers.
Thus, sales (and net income) includes $9,000
that was not received in cash during the year.
(continued)
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
39. Adjustments to Net Income
o Inventories: The $8,000 decrease is added to net
income. This is because the $8,000 decrease in
inventories indicates that the cost of merchandise
sold exceeds the cost of merchandise purchased
during the year by $8,000.
o Accounts payable (merchandise creditors): The
$3,200 decrease is deducted from net income. This
is because a decrease in accounts payable
indicates that the cash payments to merchandise
creditors exceed the merchandise purchased on
account by $3,200.
(continued)
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
40. Adjustments to Net Income
o Accrued expenses payable (operating expenses):
The $2,200 increase is added to net income. This is
because an increase in accrued expenses payable
indicates that operating expenses reported on the
income statement exceed the cash payments for
operating expenses by $2,200.
o Income taxes payable: The $500 decrease is
deducted from net income. This is because a
decrease in income taxes payable indicates that
taxes paid exceed the amount of taxes incurred
during the year by $500.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
43. Transferring the previous slide to a formal
statement of cash flows for Rundell, we can see
that part of the statement is now complete.
44. Dividends
o Cash dividends of $28,000 were declared
during 2014.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
45. Dividends
o However, as can be seen from the dividends
payable account, only $24,000 was paid.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
46. Since dividend payments are a financing
activity, the dividend payments totaling
$24,000 are reported in the Financing
Activities section.
47. Common Stock
o Rundell Inc.’s common stock account increased
by $8,000 during 2014.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
48. Common Stock
o The paid-in capital in excess of par—common
stock account increased by $40,000 during the
year.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
49. Issuing company stock is a financing
activity, so cash flows from financing
activities increase by $48,000 ($8,000 +
$40,000).
50. Bonds Payable
o Bonds Payable decreased by $50,000 during
2014, due to retiring the bonds. A check of
Rundell’s income statement shows that there
was no gain or loss on the retirement.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
51. Retiring a bond payable is a financing
activity, so a cash outflow of $50,000 is
reported in the Financing Activities
section of the statement of cash flows.
53. The cash outflow for this purchase is
shown in the Investing Activities section
of the statement.
54. Land
o The $45,000 decline in the land account was
from two transactions.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
55. Land
o Earlier, as part of Step 2 in preparing the
Operating Activities section, the $12,000 gain
was deducted from net income.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
56. The proceeds of $72,000 from the sale of
land are reported in the Investing
Activities section of the statement of cash
flows.
57. Land
The October 12 transaction is the purchase of
land for cash of $15,000. This transaction is
reported as an outflow of cash in the Investing
Activities section.
58.
59. Preparing the Statement of Cash Flows
o The completed statement of cash flows for
Rundell Inc. using the indirect method is shown
in Exhibit 6 (next slide). The increase in cash
shown on the statement ($71,500) should
match the increase in cash in Rundell Inc.’s
cash account.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
61. Lear
ning
Obje
Prep
ctive
are a
state
m
using ent of c
ash f
the d
lows
irect
,
meth
od.
3
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
62. The Direct Method
o The direct method reports cash flows from
operating activities as follows:
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
63. The Direct Method
o The final amount reported in the Cash Flows
from Operating Activities section will be the
same whether the direct or indirect method is
used. The methods differ in how the data are
obtained, analyzed, and reported.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
64. The Direct Method
o Under the direct method, the income statement
is adjusted to cash flows from operating
activities as follows:
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
65. The Direct Method
o Depreciation expense is not adjusted or
reported as part of cash flows from operating
activities. This is because depreciation
expense does not involve a cash outflow.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
66. The Direct Method
o Gains and losses are also not adjusted,
because the cash flow from operating activities
is determined directly, rather than by
reconciling net income. Proceeds from the sale
of land, which include any gains or losses, are
reported as an investing activity.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
67. Cash Received from Customers
o Rundell Inc. reports sales of $1,180,000 for
2014. To determine the cash received from
customers, sales are adjusted by any increase
or decrease in accounts receivable.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
69. Cash Payments for Merchandise
o Rundell Inc. reports cost of merchandise sold
of $790,000. To determine the cash payments
for merchandise, the $790,000 is adjusted for
any increase or decrease in inventories and
accounts payable (assuming the accounts
payable are owed to merchandise suppliers).
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
71. Cash Payments for Operating Expenses
1. Rundell Inc. reports total operating expenses
of $203,000, which includes depreciation
expense of $7,000. To determine cash
payments for operating expenses, the other
operating expenses (excluding depreciation)
of $196,000 are adjusted for any increase or
decrease in accrued expenses payable.
73. Interest Expense
o Rundell Inc. reports interest expense of $8,000.
To determine the cash payments for interest, the
$8,000 is adjusted for any increases or
decreases in interest payable.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
75. Cash Payments for Income Taxes
o Rundell Inc. reports income tax expense of
$83,000. To determine the cash payments for
income taxes, the $83,000 is adjusted for any
increases or decreases in income taxes
payable.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
79. Lear
ning
Obje
ctive
De s c
ribe
an d
fre
ill
ustra
e cas
te th
h flo
e use
w in
evalu
of
com
pany
a
’s ca ting a
sh flo
w.
4
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
80. Free Cash Flow
o Free cash flow measures the operating cash
flow available for a company to use after
purchasing the property, plant, and equipment
(PP&E) necessary to maintain current
productive capacity.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
81. Free Cash Flow
Cash flow from operating activities
Less: Investments in fixed assets
to maintain current production
Free cash flow
o Positive free cash flow is considered favorable.
A company that has free cash flow is able to
fund internal growth, retire debt, pay
dividends, and enjoy financial flexibility.
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
82. Free Cash Flow
o Research in Motion, Inc., maker of BlackBerry®
smartphones, had cash flow from operating
activities of $4,009 million in a recent fiscal
year. The statement of cash flows indicated that
the cash invested in property, plant, and
equipment was $1,039 million. The free cash
flow would be computed as follows (in
millions): from operating activities
Cash flow
$4,009
Less: Investment in PP&E needed to maintain
current production
1,039
Free cash flow
$ 2,970
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
83. di)xr
enheet fso
pp ork S Flow d
A eet (W ash tho
e
C
h
eadsment of direct M
Spr tate
S
he In
T
c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.