QuickBooks Online 2021. Purchase depreciable asset and make investment in securities. Let’s get into it with Intuit QuickBooks Online 2021. Here we are in our get great guitars practice file, we’re going to be opening up our balance sheet income statement and trial balance we’re going to do so by adding three new tabs up top, I’m going to right click on the tab up top duplicate, going to do it again, right click on the tab up top duplicate, and then right click on the tab up top one more time and duplicate again, the one on the far right, this is where I’m going to open up the trial balance.
And I’m going to say it’s going to be unrestricted. And then we don’t need anything here, the debit amount is going to be that 11 five, I believe is what we’re working with here. 11, five, yes, 11 500. We don’t need any any other categorization here. So we look good, the other side is going to be going out of that new account, we set up in the expenses, pp and e 8100. It’s also it’s going to be the fun should be unrestricted, I’m going to say unrestricted here, unrestricted. And then that’s going to be the credit of 11 500. Now, if you’re not good with with the debits and credits, obviously, if you went the wrong way, what would happen you’d see this account be doubled. And in that would be wrong way, right. And then you just switch the debits and credits, and you’d be back on so the total debits add up to the total credits, this is going to be our transaction.
Corporate Finance PowerPoint presentation. In this presentation, we will discuss the nature of asset growth, get ready, it’s time to take your chance with corporate finance, the nature of asset growth, we’re going to start off with working capital management, what is working capital management, the financing and management of current assets of the company. So when we consider this, let’s think about the accounting equation assets equal liabilities plus equity, remember that the assets are what the company has, why does the company have them in order to help generate revenue to get a return on the assets in order to help generate revenue?
Corporate Finance PowerPoint presentation. In this presentation, we will give an overview and an introduction to the concept of leverage. Get ready, it’s time to take your chance with corporate finance, leverage what is leverage use of special forces or effects to magnify outcomes given certain conditions. Let’s break that down a little bit more detail use of Special Forces sounds kind of mystical here. But there’s a couple different things that we think about with leverage. And we typically break it down into operating leverage and financial leverage. Most people when they think about leverage, they’re thinking about debt, they’re thinking about the leverage related to the debt will also have leverage related to operating leverage, which has to do with the mix between fixed costs and variable costs. So on so we have these special forces or effects have magnify outcomes. So that could magnify outcomes.
Corporate Finance PowerPoint presentation. In this presentation we will discuss the percent of sales method, the percent of sales method been a tool that can help us with our projections out into the future help us to think about where we will stand, think about what our balance sheet accounts will be in the future. If we, if we estimate some type of growth into the future also help us to determine whether or not we may need additional funding to support our growth plans that we have set in place. Get ready, it’s time to take your chance with corporate finance percent of sales method. Now this method can be a little bit confusing when you first look at it in the calculation or formula for it can be a little bit intimidating as well, I highly recommend to get a better understanding of this formula and how to apply it to go through the practice problems, we will have practice problems related to this formula in terms of Excel problems, as well as working through the practice problems and presentations in one note.
Hello in this lecture we’re going to talk about creating a statement of cash flows using the indirect method, we will be able to define a statement of cash flows, create a statement of cash flows explain a process of creating a statement of cash flows designed to limit mistakes and define the indirect method. So what we’ll do is we’ll work through basically a problem and look through the statement of cash flows. We want to think about a few things we want to think about how to create a statement of cash flows, we want to think about a few definitions of what is a statement of cash flows, we want to kind of explain what the purpose is of a statement of cash flows and going through the process can help us to do that. Also want to point out that creating the statement of cash flows can help us with setting up a problem in such a way that we can limit the amount of mistakes that we will make. So a statement of cash flows is something that in a lot of firms, people generally often have problems to create the statement of cash flows. And it’s good practice to go in there and and create the statement of cash flows and try to create a system in which it’s easy for us to have checkpoints and see where a problem is going to happen.
In this presentation, we will take a look at the statement of cash flows using the direct method. Here’s going to be our information we got the comparative balance sheet, the income statement and some additional information. And we will use this information to put together our worksheet which will be the primary source used to create the statement of cash flows using the direct method. This is going to be our worksheet. Now most of this worksheet will be similar to what we have done for the indirect method, in that we took the difference in the balance sheet accounts. So we’re taking the current year and the prior year, the current period, the prior period, all the balance sheet accounts, we’ve got cashed down to the retained earnings for the balance sheet accounts. But we’re also in this case going to give us the income statement accounts for the current period. So in other words, we’re going to break out the retained earnings the amount to its component parts, meaning we’ve got net income being broken out on the income statement. We’ve got sales cost of goods sold, the income statement accounts. So it’s going to be our same kind of worksheet here, we’re going to be in balance, we’ve converted it from a plus and minus format, we’ve removed all of the subtitles as we did under the indirect method.
This presentation we will continue on with our statement of cash flows, we’re not going to enter the final adjustments that we will need to finalize the statement of cash flows to bring those last few numbers to the correct balances. In order to do that, we’re going to use this information we’ve got our comparative balance sheet, our income statement and additional information. We put together most of our information so far with the comparative balance sheet, which we made into a worksheet. Now we’re going to use some of these other resources, the income statement, the additional resources to make those final adjustments, those fine tunings that are needed to get those few numbers that we have left and noted into balance. And this is going to be part of the normal practice where once we get this information set up, we can then make some comparisons such as net income does it tie out, such as depreciation does it tie out on the cash flow statement to what we see here on the income statement, then we can have this other information which will be given in both problems in practice, of course, we’ll just go to the gym. General Ledger. And we’ll get this information in a book problem, we don’t want to give all the detail of a general ledger or just when we’re going over an example.
In this presentation, we will continue on with the statement of cash flows. Looking at the financing activities looking at cash borrowed on notes, we’re going to be using the information with our comparative balance sheet, the income statement and the additional information focusing on the comparative balance sheet. First, it will be used to create this worksheet, we have going through this worksheet looking for all the differences and finding a home for them starting Of course, with cash down here, and then we kind of skipped around to pick up all of the cash flows from operating activities. And that’s really how people usually start this thing out. And rather than going just from top to bottom, picking out the operating activities, then we went back and we picked up the cash flows from investing activities. Now we’re going to go down and pick up the financing activities. And those deal with notes payable here. So we have the notes payable, and we have this common stock issuance. So those are going to be things that are typically going to be in the final financing. And you might think of as well, how would I know this? What? Why would I know that’s going through? Well, if we go through these, remember that the cash is obviously down here, that’s where we started. And then the current assets versus current liabilities, most of them are going to be up here. And that’s going to be the accounts receivable, the inventory, prepaid expenses, and then equipment.
In this presentation, we will continue on with our statement of cash flows. Taking a look at the investing activities, specifically the purchase of equipment, we’re going to be using the comparative balance sheet, the income statement and additional information focusing here on the comparative balance sheet, which we use to make this worksheet. So this worksheet is our comparative balance sheet. We’ve been going through this worksheet and really looking for the differences. We’re finding a home for all the differences. Once we do that, we’re feeling pretty good. We have done this all the way through the operating activities. So are the cash flows from operations. So we’ve gone through here we’ve kind of picked and choose the items that are going to be cash flows from operations, which is probably the way most people approach this. But just note that as we’ve done that, we’ve tried to pick up the exact differences here. We haven’t gone to the income statement and thought about it separately outside of this worksheet, and then we’re going to go back and make adjustments. So we found a home for the difference in cash because that’s Kind of like our bottom line. And then we’ve got accounts receivable, inventory prepaid expenses, and then we skipped equipment and went down to accounts payable.