This document contains a resume and cover letter for Victoria McGeehan. It details her education, including a Bachelor of Science in accounting from the University of Texas at Arlington with honors. It lists her relevant work experience in accounting, teaching, and tutoring. It also includes attachments with sample accounting work regarding deferred assets/liabilities, defined benefit pensions, and statements of cash flows.

1. VICTORIA MCGEEHAN
5303 Signal Peak Drive
Arlington, TX 76017
817-561-6844
vamcgeehan@hotmail.com
BUSINESS EDUCATION
Bachelor of Science in accounting, summa cum laude 2015
University of Texas at Arlington, Arlington, TX AACSB Accreditation GPA 4.0
Courses include: Financial Accounting I, II; Business Law I, II; Income Tax for Individuals; Auditing; Business
Finance; Cost Accounting; Organizational Strategy; Buyer Behavior; Effective Business Communications;
Principles of Macroeconomics; Principles of Microeconomics; Economics of Health; Real Estate Fundamentals
SCHOLASTIC HONORS
National Merit Finalist High School Valedictorian
All-American Scholar The National Dean’s List
EXPERIENCE (2003-2014)
Associate 2003
Sutton Frost Cary LLP, Arlington, TX
 Helped prepare income taxes
Chemistry Teacher 2012 – 2013
St. Ignatius College Preparatory, Fort Worth, TX
Tutor 2005
Mansfield Independent School District, Arlington, TX
 Tutored 5th and 6th grade math (Cross Timbers Intermediate School)
Substitute Teacher
Arlington Independent School District, Arlington, TX
 Tutored English (Young Junior High) 2013-2014
 Long-term sub for 9th Grade Integrated Physics & Chemistry (Turning Point H.S.) 2007
 Tutored 4th grade math and 5th grade science (Burgin Elementary) 2005-2006
 Tutored math (grades 3-6) and language arts (grades 3-5) (Amos Elementary) 2003-2004
ACCOUNTING SKILLS: MY SCORES ON ROBERT HALF SKILLS ASSESSMENTS
Assessment Global Average (% ) My Score (% ) My Ranking (Percentile)
Financial Analysis 69% 88% 90th
Bookkeeping – Professional 71% 92 % 90th
Accounting Clerk 69% 81% 70th
General Ledger Knowledge 66% 72% 60th
Microsoft Excel 2013 – Normal User 73% 87% 60th

2. SKILLS
Microsoft Word Verbal communication
Microsoft Excel Mathematics
Writing
EXCEL ATTACHMENTS (SAMPLES)
Deferred Assets and Liabilities
Defined Benefit Pension
Statement of Cash Flows: Indirect Method
Statement of Cash Flows: Direct Method

3. Deferred Tax Assets and Liabilities by Victoria McGeehan
ASC 740-10
Financial Reporting (GAAP): Pre-taxFinancial Income
Full Accrual
Method
Income Tax Expense
Income Tax (IRS laws): Taxable Income
ModifiedCashMethod
Income Tax
Payable
Only temporary differences betweenFinancial ReportingIncome and taxable
income generate DeferredTax Assetsand DeferredTax Liabilities.
Some items are nevertaxable (e.g.,life insurance benefitsonkey employees).
Other itemsare neverrecognizedfor Financial Reporting Income (e.g.,deductionsfor
dividendsfromU.S. corporations.)
Journal entry--- Income Tax Expenseiscalculatedfrom:
Income Tax
Payable
DeferredTax
Asset
DeferredTax Liability
Income Tax Expense
DeferredTax
Asset
Income Tax
Payable
DeferredTax Liability
DeferredTax Liabilities: increaseinfuture taxes payable
from taxable temporary differences
Examples:
Some deferredtax liabilitiesare generatedwhenrevenues/gainsare recognized
for financial accounting before they are recognizedfortax purposes.

4. 1. Accounts Receivable:
(1) revenue thatisrecognizedbyGAAPbut
not fortax purposes
(2) zerotaxable income whenaccountreceivableis
bookedas
revenue
(3) taxable income whenaccount receivable is
paid
(4) createsfuture taxespayable andfuture tax liability
AccountsReceivable (atthe endof Year1) 50000
Tax Rate 0.4
DeferredTax Liability(Year1) 20000
Projectedschedule of future accountsreceivablepayments:
Year 2 Year 3 Year 4 Year 5 Total
Payments 20000 15000 10000 5000 50000
Tax Rate 0.4 0.4 0.4 0.4
DefferedTax Liability 8000 6000 4000 2000 20000
Paymentsreceivedon Accounts Receivable decrease the DeferredTax LiabilityAccount
and increase Income Tax Expense.
DeferredTax Liability(Year1): 20000
DeferredTax Liability(Year2): 12000
DeferredTax Liability(Year3): 6000
DeferredTax Liability(Year4): 2000
DeferredTax Liability(Year5): 0
2. Installmentsales: (1) grossprofitrecognizedatsale forfinancial reporting
(2) grossprofitrecognizedwhencashreceivedfortax
3. Percentage-of-completionconstructioncontracts: (1) percentage of
profitrecognizedeachperiodforfinancial reporting (2) profitrecognizedfor
tax whenprojectcompleted

5. 4. Equity methodfor investments(20 to 50 percent ownership):
(1) investeesearnings,losses,anddividendsadjustthe carryingamount
for financial reporting (2) onlydividendsare includedintaxableincome
5. Fair value recording offinancial instrumentsfor financial reporting:
(1) unrealizedholdinggainsincludedinnetincome
(2) income taxedwhenreceived
Other deferredtaxliabilitiesare generatedwhenexpenses/lossesare
deductedbefore theyare recognizedfor financial accounting purposes.
6. Depreciation: (1) depreciationbyvariousmethodsforfinancial reporting
(2) accelerateddepreciationfortax purposes(MACRS).
7. Pensionfunding: (1) contract determinesemployer'sexpenseobligation
for financial reporting(2) employer'stax deductiblecontributiontothe pension
fundexceedsobligation
8. Prepaidexpenses: (1) expensesare prepaidinaperiodbefore theyare
incurredfor financial reporting(2) prepaidexpensesare deductedwhenpaid
9. Interestand taxes on self-constructedprojects: (1) capitalizedandthen
depreciatedforfinancial reporting(2) deductedfortax purposeswhenpaid
DeferredTax Assets:Decrease infuture taxes payable
from deductible temporary differences
Examples:
Some deferredtax assets are generatedwhenexpenses/lossesare deductible
after beingincludedfor financial reportingpurposes.
1. Accrual basis product warranties: (1) warrantycosts are estimated
and recordedinthe periodof sale (2) actual warranty costsare
deductedwhenincurred
Warranty expense (atthe endof Year1) 45000
Tax Rate 0.4
DeferredTax Asset(Year1) 18000
Projectedschedule of future accountsreceivablepayments:

6. Year 2 Year 3 Year 4 Year 5 Total
Warranty costs 20000 10000 8000 7000 45000
Tax Rate 0.4 0.4 0.4 0.4
DeferredTax Asset 8000 4000 3200 2800 18000
Paymentsmade for warranty costs decrease the DeferredTax Asset Account
and increase Income Tax Expense.
DeferredTax Asset (Year1): 18000
DeferredTax Asset(Year2): 10000
DeferredTax Asset(Year3): 6000
DeferredTax Asset(Year4): 2800
DeferredTax Asset(Year5): 0
2. Estimated liabilitiesdue todiscontinuedoperations: (1) liabilitiesare
estimatedandrecordedforfinancial purposes (2) expensesare
deductible whenpaid
3. Allowance for bad debt expense: (1) bad debtexpenseisestimated
and recordedduringthe appropriate periodforfinancial purposes
( to match revenues) (2) baddebtexpenseisdeductible
whenaccountis writtenoff
4. Fair value recording offinancial instrumentsfor financial reporting:
(1) unrealizedholdinglossesincludedinnetincome
(2) deductible whenlossisrealized
5. Contingentliabilities: (1) alossis recordedforfinancial purposeswhen
the lossis probable andmeasurable (2) deductiblewhenthe lossactually
paid
6. Bad debtexpense: (1) estimate recordedforfinancial purposes
(2) deductible whenincurred
7. Indirectinventory costs: (1) expense recordedforfinancialpurposes
(2) costs capitalizedandincludedinCOGSwheninventoryissold
8. Stock based compensationexpense: (1) expense isallocatedduring
the service periodforfinancial purposes(2) expenseisdeductible
whenoptionisexercised

7. Other deferredtaxassets are generatedwhenrevenues/gainsare
taxed before theyare recognizedfor financial accounting purposes.
5. Prepaidrevenues: (1) prepaidrevenuesare receivedbeforetheyare
earnedforfinancial reporting(2) prepaidrevenuesare taxable whenpaid
(e.g.------rents,subscriptions)
6. Salesand leasebacks: (1) revenue deferredandrecordedforfinancial
purposesduringthe contract (2) revenue istaxableonsale date
7. Prepaidcontracts: (1) revenue recognizedwhenearnedfor
financial purposes (2) moneyforcontract is taxable whenreceived
8. Prepaidroyalties: (1) revenue isrecognizedwhenearnedfor
financial purposes (2) money forroyaltiesistaxable whenreceived
References:
IntermediateAccounting 15thEditionbyKieso,Weygandt,andWarfield
c. 2013
IntermediateAccounting Demystified byWinkandCorradino
c. 2011

8. Defined Benefit Pension by Victoria McGeehan
ASC-715-30
2017
Service cost $52,000.00
Beginning balance in PBO account $175,000.00
Discount rate used by company 0.10
Beginning balance in Plan Asset account $160,000.00
Long-term rate of return (expected interest) 0.08
Total prior service costs $245,000.00
Amortization amount for current year
Cumulative net loss or (gain) $52,630.00
Average of employees' remaining service life (years) 15.00
Amount funded $45,000.00
Actual return rate on plan assets 0.11
Retiree payments $50,000.00
Beginning balance in Prepaid/Accrued $30,000.00
Sample amortization schedule:
When there are prior service costs (i.e., retroactive benefits), amortize the costs overthe years of
future service and add to pension expense.
Amortization schedule for prior service costs based on Years
of Future Service
Years of future service expected
Year 2018 2019 2020
Total service years 10 7 3
per year
Total service years 20
(10+6+4)
Year
Total prior service
costs Fraction of total Amt. to amortize Balance**
2018 245,000 1/2 122,500.00 122,500
2019 245,000 7/20 85,750.00 36,750
2020 245,000 3/20 36,750.00 0

9. ** Prior balance - amount to amortize
Gain or loss calculation example:
When estimates do not equal the actual results, a net gain or loss occurs. An actuary
determines the cumulative net gain or loss.
Corridor amount (i.e., threshold amount for recognizing actuarial gains and losses)
A 10% of beginning Projected Benefit Obligation (PBO) 17500
B
10% of beginning balance of Plan
Assets 16000
Use the higher of A or B as the
corridor 17500
If the absolute value of the cumulative net loss or gain is greater than the corridor amount,
the difference is the net loss or gain. It must be amortized over the average of employees'
remaining service lives.
Difference between absolute value of net loss/gain and corridor: $35,130.00
Difference amortized by straight-line over average of employees' remaining service lives: $2,342.00
If Ell is a positive number, then G59 is a loss and it is ADDED to pension expense.
If Ell is a negative number, then G59 is a gain and it is SUBTRACTED from pension expense.
Year 2017
Pension Expense:
Add (1) Service cost $52,000.00
Current pension benefits earned by employees
Computed by actuary with Present Value techniques
Add (2) Interest cost $17,500.00
Interest owed for
benefits
Beginning Projected Benefit Obligation (PBO)
times discount rate (i.e., settlement
rate)
Subtract (3) Expected return on plan assets $12,800.00

10. Beginning balance in Plan Assets
times
long-term rate of
return
Add (4) Amortization of unrecognized prior service cost $122,500.00
Allocated on basis of Years of Future Service
Add loss or First determine the corridor amount which is a threshold for recognizing
subtract gain the gain or loss
10% of the beginning projected benefit obligation (PBO): $17,500.00
10% of the beginning plan assets: $16,000.00
Corridor amount: $17,500.00
Test for net loss or
gain: Yes: net loss or gain
(compare absolute value of cumulative loss/gain to corridor amount)
Value of net loss (positive amount; add to pension expense) or net gain (negative amount;
subtract from pension expense)
Add loss (5) Gain or loss 'Net loss of:' $35,130.00
or Divided by average remaining employees' service lives: $2,342.00
Subtract gain
Total Pension Expense: $181,542.00
Pension Expense = 1 + 2 - 3 + 4 + 5
Actual Interest Earned on Plan Assets
Beginning balance in Plan Assets times $17,600.00
actual return on Plan Assets
Journal Entry:
Pension Expense $181,542.00
Cash $45,000.00
Prepaid/Accrued
Pension 0 $136,542.00

11. T-Accounts
Plan Assets
BeginningBalance $160,000.00
Actual interestearnedonbeginningbalance $17,600.00
Paymentforretiredemployees $50,000.00
Amountfunded $45,000.00
Total debitsandtotal credits $222,600.00 $50,000.00
Balance $172,600.00 -----
Projected Benefit Obligation
BeginningBalance $175,000.00
Interestearnedonbeginningbalance $17,500.00
Paymentforretiredemployees $50,000.00
Service cost $52,000.00
Total debitsandtotal credits $50,000.00 $244,500.00
Balance ---- $194,500.00
Prepaid/Accrued
Beginningbalance $30,000.00 $0.00
Prepaid/AccruedPension $0.00 $136,542.00
Total debitsandcredits $30,000.00 $136,542.00
Balance $0.00 $106,542.00
Balance adjustment $84,642.00
Total debitsandcredits $84,642.00 $106,542.00
Balance $0.00 $21,900.00
Amount of (underfunding)/overfunding ($21,900.00)
(Value of plan assets minus the Projected Benefit Obligation)
This amount should be the ending balance in the prepaid/accrued account.
If not, make an adjusting entry so that this amount is the ending balance in the prepaid/accrued account.

12. Assuming that the two amounts are not equal, the amount of the adjustment is: $84,642.00
Tests to determine the amount of the adjustment:
1. If the account is overfunded (i.e., a positive number) and there is a debit balance in the Prepaid account and the
balance is greater than the amount of overfunding, subtract the overfunding amount from the balance and enter a
debit in E147.
FALSE FALSE
2. If the account is underfunded (i.e., negative number) and there is a credit balance in the prepaid account and the
absolute valueof the debit balance is greater than the absolute value of the underfunding,subtract the absolute
value of the underfunding
TRUE $84,642.00
NOTE: All the various possibilities need to be listed. I only listed two.
References:
Intermediate Accounting Demystified c 2011 by Wink and Corradino
Intermediate Accounting 15th ed. By Kieso, Weygandt,and Warfield c 2013

13. Statement of Cash Flows: Indirect Method
by Victoria McGeehan
ASC-230
Enter data insolidblackboxes.
Necessarymaterials:
Balance sheetsforprioryear(or period) andcurrentyear(or period)
Currentincome statement
General ledger
1. Calculate the change in the CASH account.
Cash accountbalance for prioryear (orperiod):
Cash accountbalance for currentyear (orperiod):
Change incash account: $0.00
2. Calculate the net cashflow from Operating Activities.
Note: The indirectmethodstarts with NET INCOMEand makes adjustments
to NET INCOME. Netincome wasdeterminedusingaccrual based
accountingso some adjustmentsmustbe made toshow changes
incash.
Net income:

14. Note: Some itemson the Income Statementdo not affect cash.
Add back to net income any expensesthatdo not affectcash.
Depreciationexpense
Amortizationof limited-life intangible assets
Deferredcosts (e.g.,bondissue costs)
Amortizationof bonddiscount
Loss fromsellingplantassets
Loss fromthe impairmentof assets
Loss due to land condemnation
Note: Subtract from net income any revenues that do not affect cash.
Amortizationof bondpremium Subtract
Gain fromthe sale of plantassets Subtract
Gain fromland condemnation Subtract
Note: The change in cash from ASSET ACCOUNTSis the opposite
of the change inthe accounts. For example,if AccountsReceivable
increased$10,000, then$10,000 cash of Salesrevenue wasnotreceivedso
netIncome isdecreasedby$10,000.

15. Current asset accounts:
AccountsReceivable forpriorperiod:
AccountsReceivable forcurrentperiod:
Change innetincome fromAccounts Receivable: $0.00
PrepaidExpensesforpriorperiod:
PrepaidExpensesforcurrentperiod:
Change innetincome fromPrepaidExpenses: $0.00
Merchandise Inventoryforpriorperiod:
Merchandise Inventoryforcurrentperiod:
Change innetincome fromMercandise Inventory: $0.00
Suppliesforpriorperiod:
Suppliesforcurrentperiod:
Change innetincome fromSupplies: $0.00
Adjustmenttonetincome forpension
benefits(pensionasset):
Note: (Pensionexpense - cashpaid;

16. Pensionexpense <cash paid)
Pensionexpense:
Cash paid:
Pensionasset: $0.00
Note: The change in the liabilityaccounts (increase or decrease)
is the same as the change in net income.
For example,if accountspayable decreasedby$10,000 fromone periodtothe next,
$10,000 incash was spenttocause the decrease. Soyousubtract $10,000
fromnet income.
Current liability accounts:
AccountsPayable forpriorperiod:
AccountsPayable forcurrentperiod:
Change innetincome fromAccountsPayable: $0.00
SalariesPayable forpriorperiod:
SalariesPayable forcurrentperiod:
Change innetincome forSalariesPayable: $0.00
InterestPayable forpriorperiod:

17. InterestPayable forcurrentperiod:
Change innetincome forInterestPayable: $0.00
Income TaxesPayable forpriorperiod:
Income TaxesPayable forcurrentperiod:
Change innetincome forIncome TaxesPayable: $0.00
DeferredIncome Taxesforpriorperiod:
DeferredIncome Taxesforcurrentperiod:
Change innetincome forDeferredIncome Taxes: $0.00
OtherAccruedLiabilitiesforpriorperiod:
OtherAccruedLiabilitiesforcurrentperiod:
Change innetincome forother AccruedLiabilities: $0.00
Payroll TaxesPayable frompriorperiod:
Payroll TaxesPayable fromcurrentperiod:
Change innetincome forPayroll TaxesPayable: $0.00
UnearnedRevenuesfrompriorperiod:

18. UnearnedRevenuesfromcurrentperiod:
Change innetincome forUnearnedRevenues: $0.00
Miscellaneous:
Portionof long-termdebt
due inprior period:
Portionof long-termdebtdue incurrent
period:
Change inlong-termdebtdue incurrentperiod: $0.00
Adjustmenttonetincome forpension
benefits (unfundedliability):
Note: (Pensionexpense - cashpaid;
Pensionexpense >cash paid)
Pensionexpense:
Cash paid:
Pensionunfundedliability: add $0.00
Common stock investment (prior period)
using equity method:
Common stock investment (current period)
using equity method:

19. Increase/decrease ininvestmentoncommonstock $0.00
usingequitymethod
Net cashfrom Operating Activities: $0.00
(Addall valuesinthe boxeswitharrows except
subtract the three boxesthatspecify"subtract.")
3. Calculate the net cashflow from investing activities:
Note: Examine the balance sheetaccounts of LONG TERM
assets and liabilities.
Determine whichtransactions affectedcash.
Investingactivitiesinclude:
Purchase or sale of property,plant,andequipment
Purchase or sale of otherlong-termassets
Purchase or sale of long-termsecuritiesin othercompanies
Note: Interestanddividendsreceivedoninvestments
are classifiedas"Operating"items. Paymentof interestisalso
an "Operating"activitybecause these are onthe
Income Statement.
For the transactions that affectedcash:
Sale of land Add
Cash fromcondemnationof
land Add
Sale of building Add

20. Sale of long-termbondsin Add
ABC corporation
Sale of equipment Add
Sale of stock inEFG
corporation Add
Sale of patent Add
Receivedloanfrom bank Add
Purchase of land Subtract
Purchase of building Subtract
Purchase of equipment Subtract
Major equipmentrepair(s) Subtract
Purchase of long-termbonds
in ABCCorporation Subtract
Purchase of stock inEFG Subtract
corporation
Purchase of patent Subtract
Loan to LMN corporation Subtract

21. Investmentinpension fund Subtract
Net cashfrom investing activities: $0.00
(Addthe transactionsthatincreasedthe cashaccount
and subtractthe transactionsthatdecreasedthe
cash account.
4. Calculate the net cash flow from financing activities.
Financingincludesissuingstocks
and bondsandredeemingbonds. Italsoincludesbuying
treasurystockand payingdividends.
For the transactions that affectedcash:
Sale of commonstock Add
Sale of bonds Add
Redeemingbonds Subtract
Buyingtreasure stock Subtract
Payingcash dividends Subtract
Net cast from financing activities: $0.00
Net income:
Net change in cash from operating, investing,
and financing activities:

22. Plus beginning Cash balance:
Equals ending cashbalance:
Check that the amount in "I275"is equal tothe amount in"G19."
If these amounts are equal, the result is "OK."
If these amounts are not equal, the result is "PROBLEM !!!"
References:
IntermediateAccounting 15th Edition by Kieso,Weygandt,andWarfield
IntermediateAccountingDemystified byWinkand Corradino
http://accounting-financial-tax.com/2009/04/list-of items-included-
on-cash-flow-statements/

23. Cash Flow Statement: Direct Method
by Victoria McGeehan
ASC-230
Enter data in these cells:
Ending cash balance:
1. Calculate the net cashflow from operating activities:
Note:Using the Income Statement,adjust itemby item
from the accrual basis to the cash basis.
1A: Cash receiptsfrom customers: adjust salesrevenue by
an increase or decrease inaccounts receivable
If Accounts Receivable increased,subtractthe increase from
Salesrevenue. If AccountsReceivable decreased,addthe decrease to
Salesrevenue.
Salesrevenue:
AccountsReceivable frompriorperiod:
AccountsReceivable fromcurrentperiod:
Cash receivedfromcustomers: $0.00
IB: Cash receiptsfrominterest:adjust interestrevenue by an increase or
decrease in InterestReceivable
Interestrevenue:
InterestReceivable frompriorperiod:
InterestReceivable fromcurrent period:
Cash receivedfrominterest: $0.00

24. IC: Cash receiptsfrom dividends: adjust dividendrevenue byan
increase or decrease in DividendsReceivable
Dividendrevenue:
Dividendsreceivable frompriorperiod:
Dividendsreceivable fromcurrentperiod:
Cash receivedfromdividends: $0.00
2A: Cash payments to suppliers: (1) use the change in
Inventoryto adjust the Cost of GoodsSold
(2) Use the change in Accounts Receivable todetermine the
cash spent on Purchases
Cost of Goods Sold:
Inventoryfrompriorperiod:
Inventoryfromcurrentperiod:
Cash purchases: $0.00
AccountsPayable frompriorperiod:
AccountsPayable fromcurrentperiod:
Cash paymentstosuppliers: $0.00
2B: Cash paid to employeesforsalaries: adjdust
salariesexpense byan increase or decrease in
salariespayable
Salariesexpense
SalariesPayable frompriorperiod:

25. SalariesPayable fromcurrentperiod:
Cash paidforemployee salaries: $0.00
2C: Cash paid for interest: (1) adjust interestexpense
by an increase or decrease in InterestPayable
(2) subtract the amortization expense ofbond
discount because it doesnot affect cash
(3) add the amortization of bond premiumbecause
it doesnot affect cash
Interestexpense
InterestPayable frompriorperiod:
InterestPayable fromcurrentperiod:
Amortizationof bonddiscount:
Amortizationof bondpremium:
Cash paidforinterest: $0.00
2D: Cash paid for operating expenses: (1) Use the change
in PrepaidExpensesand the (2) change in Accrued
ExpensesPayable to adjust Income Statement
OperatingExpensesfor cash spent on
OperatingExpenses.
OperatingExpenses:
PrepaidExpensesfrompriorperiod:
PrepaidExpensesfromcurrentperiod:
AccruedExpensesPayablefrompriorperiod:

26. AccruedExpensesPayablefromcurrentperiod:
Cash paymentsforoperatingexpenses: $0.00
2E: Cash paid for income taxes: Use the change
in Income Taxes Payable to adjust the
Income Statement Income Tax Expense
Income Tax expense:
Income Taxes Payable frompriorperiod:
Income TaxesPayable fromcurrentperiod:
Cash paidforincome taxes: $0.00
Net cashfrom operating activities:
Cash receivedfromcustomers: $0.00
Cash receivedfrominterest: $0.00
Cash receivedfromdividends: $0.00
Cash paymentstosuppliers: $0.00
Cash paymentstoemployees: $0.00
Cash paymentsforinterest: $0.00
Cash paymentsforoperatingexpenses: $0.00
Cash paidforincome taxes: $0.00
Total net cash from operating activities: $0.00
2. Calculate the net cashflow from investing activities:
Note: Examine the balance sheetaccounts of LONG TERM
assets and liabilities.
Determine whichtransactions affectedcash.
Investingactivitiesinclude:
Purchase or sale of property,plant,andequipment
Purchase or sale of otherlong-termassets
Purchase or sale of long-termsecuritiesin othercompanies

27. Note: Interestanddividendsreceivedoninvestments
are classifiedas"Operating"items. Paymentof interestisalso
an "Operating"activitybecause these are onthe
Income Statement.
For the transactions that affectedcash:
Sale of land Add
Cash fromcondemnationof land Add
Sale of building Add
Sale of long-termbondsin Add
ABC corporation
Sale of equipment Add
Sale of stock inEFG corporation Add
Sale of patent Add
Receivedloanfrom bank Add
Purchase of land Subtract
Purchase of building Subtract
Purchase of equipment Subtract

28. Major equipmentrepair(s) Subtract
Purchase of long-termbonds
in ABCCorporation Subtract
Purchase of stock inEFG Subtract
corporation
Purchase of patent Subtract
Loan to LMN corporation Subtract
Investmentinpensionfund Subtract
Net cashfrom investing activities: $0.00
(Addthe transactionsthatincreasedthe cashaccount
and subtractthe transactionsthatdecreasedthe
cash account.
3. Calculate the net cashflow from financing activities.
Financingincludesissuingstocks
and bondsandredeemingbonds. Italsoincludesbuying
treasurystockand payingdividends.
For the transactions that affectedcash:
Sale of commonstock Add
Sale of bonds Add
Redeemingbonds Subtract
Buyingtreasure stock Subtract
Payingcash dividends Subtract

29. Net cast from financing activities: $0.00
Net change in cash from operating, investing, $0.00
and financing activities:
Plus beginning Cash balance:
Equals ending cashbalance: $0.00
Check that the amount in "G5" is equal tothe amount in"I230"
If these amounts are equal, the result is "OK."
If these amounts are not equal, the result is "PROBLEM !!!" OK
References:
IntermediateAccounting 15th Edition by Kieso,Weygandt,andWarfield
IntermediateAccountingDemystified byWinkand Corradino
http://accounting-financial-tax.com/2009/04/list-of items-included-
on-cash-flow-statements/