Creating a Statement of Cash Flow-Indirect Method-Accounting%2C financial

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.

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Statement of Cash Flow Direct Method

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.

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Statement of Cash Flow Adjustments

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.

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Statement of Cash Flow Indirect Method Change In Accounts Payable

In this presentation, we will continue on with our statement of cash flows using the indirect method looking in on the change in accounts payable, we’re going to be using this information or a comparative balance sheet income statement and other information focusing primarily on comparative balance sheet creating a worksheet with it, looking like this. This basically being the comparative balance sheet. But in a post closing trial balance format, we have our two periods and the difference between those periods here. Our goal is to find a home for all of these differences. Once we do so we’ll end up with basically the change in cash. That being our bottom line that we’re looking for. We’ve gone through this information in terms of the cash flows from operations. We’re currently looking through the current assets, and now we’re moving on to the current liabilities. So we’ve looked at the accounts receivable, the inventory, prepaid expenses, we have these here. We’re moving on now to a liability and notice when we do that, when we’re working From the worksheet, we’re kind of skipping over some things here.

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Post Closing Trial Balance & financial statements

Hello in this presentation we will discuss the post closing trial balance and financial statements. When considering the financial statement relationship to the trial balance, we typically think of the adjusted trial balance that being used to create the financial statement. It’s important to note, however, that any trial balance that we use can be generated into financial statements. It’s just that the adjusted trial balance is the one that we have totally completed and prepared and ready. In order to create the financial statements to be as correct as possible as of the date we want them, which is usually the end of the month or the end of the year. Note that the names of the unadjusted trial balance the adjusted trial balance and the post closing trial balance are really a convention they’re all basically trial balances.

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