In this presentation, we will put together a worksheet that will then be used to create the statement of cash flows using the indirect method. To do this, we’re going to use our resources which will include a comparative balance sheet, and income statement and added information. Remember that in practice, we’re typically going to have a comparative balance sheet RS here being for the current year 2005 and 2000. x for the prior year. So we need a comparative to time periods in order to create our worksheet. This will be the primary components that we’ll use to create our worksheet. We will need the income statement when I’m creating the statement of cash flows mainly to check up on some of the differences that we will have in our worksheet. And then in a book problem will typically be told some other things related to for example, purchases of or sales of equipment, borrowings, if we had any cash dividends or any dividends at all, this is added information we would Need. In practice, of course, we would just be checking on these things by looking at the difference and going back to the GL. And just taking a look at those differences in order to determine if we have any added information that needs to be adjusted on our statement of cash flows.
This presentation and we’re going to take a look at the month in financial statements. And this time since we have two months to compare, we’re going to be creating comparative financial statements comparing the two months that we have a comparative balance sheet, a comparative income statement, we’ll also take a look at the transactions by date, the great report for checking our numbers, reviewing numbers for an employee, and possibly even for billing purposes to see how many transactions has been made. So you can possibly bill by transaction.
This presentation and we will generate, analyze, print and export to Excel our month in financial statement reports that’s going to include the profit and loss report or income statement report, the balance sheet report, and then we’ll take a look at that transaction detailed report that’s going to give us a lot of information to see what we have done over the month. It’s really good information that some people use for billion for the month.